Polo Biology Global Group Corporation
TSX VENTURE : PGG

Polo Biology Global Group Corporation

August 28, 2009 14:23 ET

Polo Biology Global Group Corporation Reports Second Quarter 2009 Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 28, 2009) -

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Polo Biology Global Group Corporation ("Polo" or the "Company") (TSX VENTURE:PGG), today announced its financial results for the three-month and six-month periods ended June 30, 2009.

For the three-month period ended June 30, 2009, Polo reported revenues of $835,000 versus $954,000 in the corresponding period in 2008. Gross profit amounted to $588,000 or 70 percent of revenues during the first quarter. Lower year-over-year revenues were primarily due to $330,000 less in new franchise sales being recognized in 2009 compared to the same period in 2008. However, the Company did recognize $646,000 in new retail sales in 2009 compared to $nil in 2008. The Company also experienced a $346,000 reduction in product sales in 2009 from the same period in 2008. Management believes these reductions are a result of the challenging global economic environment, and has commenced a significant advertising and marketing campaign to draw more attention to the benefits of its franchises and products. The Company introduced a new technical support fee in 2008 that, while only marginally contributing to revenues in the three months ended June 30, 2008, provided an additional $95,000 of revenues to the Company in 2009 over 2008. The Company had an operating loss amounting to $353,000, compared to an operating profit of $63,000 in the same period in 2008, and a net loss after non-controlling interest of $194,000 ($0.00 per share), compared to a net income of $25,000 ($0.00 per share) in the same period in 2008.

For the six-month period ended June 30, 2009, Polo reported revenues of $1,501,000 versus $2,518,000 in the corresponding period in 2008. Gross profit amounted to $916,000 or 61 percent of revenues during the first quarter. Lower year-over-year revenues were primarily due to $1,091,000 less in new franchise sales being recognized in 2009 compared to the same period in 2008. However, the Company did recognize $646,000 in new retail sales in 2009 compared to $nil in 2008. The Company also experienced a $749,000 reduction in product sales in 2009 from the same period in 2008. Technical support fees contributed an additional $173,000 of revenues in 2009 compared to 2008. The Company had an operating loss amounting to $1,131,000, compared to an operating profit of $693,000 in the same period in 2008, and a net loss after non-controlling interest of $461,000 ($0.01 per share), compared to a net income of $396,000 ($0.01 per share) in the same period in 2008.

As at June 30, 2009, Polo's cash and cash equivalents amounted to $517,000 compared to $1,446,000 at December 31, 2008.

"The second quarter, and first six months proved to be a challenging period for Polo due to the state of the global economy and its impact on consumer spending and behaviour for our products domestically and in our target export markets," said Paul Wu, President and Chief Executive Officer of Polo Biology Global Group. "We have commenced retail sales that we believe will make significant positive contributions to our business in upcoming periods."

About Polo Biology Global Group Corporation

The Company, through its operating subsidiaries in China, develops, manufactures and distributes health supplements, personal and homecare products across China under the Polo brand. The Company currently distributes its products through Polo Biology, which manages a network of retail outlets operated by its franchisees.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Polo Biology Global Group Corporation
    Paul Wu
    Chief Executive Officer
    (604) 609-6155
    info@pbggc.com
    or
    Polo Biology Global Group Corporation
    Ali Mahdavi
    Corporate Finance & Investor Relations
    (416) 962-3300
    am@spinnakercmi.com