Chervon’s Ego reports 10 percent revenue gain

The board of directors of Chervon Holdings Limited announced the company’s unaudited consolidated results for the six months ended June 30, 2024, along with the comparative figures for the six months ended June 30, 2023. Chervon reported its revenue increased by 10.5% from $738.5 million (US) to $815.7 million during the 6-month reporting period, benefiting from our strong points-of-sales performance and higher volume of customer orders. 

“Our strong brand appeal and effective promotional activities helped stimulate end consumer demand and accelerate the channel destocking cycle. We achieved a 25.6% growth of net profit during the Reporting Period as compared to the same period in 2023 with improved efficiency,” said the company in a statement. 

Revenue from its outdoor power equipment segment increased by 10.2% from $445.2 million for the six months ended June 30, 2023, to $490.4 million for the six months ended June 30, 2024, while revenue from power tools segment increased by 9.5% from $286.3 million for the six months ended June 30, 2023, to $313.5 million for the six months ended June 30, 2024.

Our overall gross profit margin improved from 32.1% to 32.9%, primarily driven by scale restoration and operational efficiency enhancement, as well as favorable raw material costs and currency exchange rates. Benefiting from a disciplined approach for optimizing the operating expenses in a balanced and efficient manner, we recorded net profit of approximately US$61.6 million for the six months ended June 30, 2024, as compared to a net profit of US$49.1 million for the six months ended June 30, 2023.

EGO 

“During the reporting period, we have strategically expanded and diversified our Ego product portfolio. Notably, we successfully launched two lithium-ion battery tractor products in Europe and North America, thereby expanding the product range for riding lawn mowers and reinforcing our leading position in the global market for lithium-ion riding lawn mowers. Additionally, capitalizing on the high-voltage performance advantages and our extensive user base for battery pack platforms, we introduced highly acclaimed new products in the lifestyle category. This marks a significant advancement in extending our battery platform and brand influence beyond the OPE sector. We remain committed to the strategy of Power by Ego and are steadily acquiring new customers.”

“Meanwhile, we have made commendable progress in global channel expansion. In the traditional retailor channels, we have secured an increasing number of shelf placements for our Ego products. In the online sales channels, our point-of-sales growth continues to accelerate rapidly, positioning us as the leading brand in these channels and further enhancing our competitive advantages. In the distributor channels, we are actively advancing high-end distributor partnerships in key North American markets. Simultaneously, we have achieved significant progress in European and other regions by acquiring more landscaping business customers and new dealer channels, which we believe will bolster the sales in both residential and commercial series tools.” 

“At present, we believe EGO has positioned us as a global leader in lithium-ion OPE segment. For example, our walk-behind equipment, including mower and snow blowers, is the top brand in terms of market share in lithium-ion OPE in North America. The strategic expansion of product ranges and channels has been pivotal in gaining rapid market share growth and enhancing our overall market presence. We expect EGO, the top-rated brand in the cordless OPE category, to carry the momentum into the full year and beyond.” 

Along with Ego equipment, Chervon Holdings owns tool brands Flex, Skil, and the Devon line of power tools sold in Asia.

By segment

• Revenue from the sales of OPE products increased by 10.2% from $445.2 million for the six months ended June 30, 2023 to $490.4 million.
• Revenue from the sales of power tools increased by 9.5% from $286.3 million for the six months ended June 30, 2023 to $313.5 million.

By geographic location, revenue from:

• North America increased by 13.8% from $485.3 million for the six months ended June 30, 2023 to $552.4 million. 
• China increased by 18.2% from $54.2 million for the six months ended June 30, 2023 to $64.1 million. 
• Europe decreased by 1.5% from $174.9 million for the six months ended June 30, 2023 to $172.3 million. 
• the rest of the world increased by 11.8% from US$24.1 million for the six months ended June 30, 2023 to US$27.0 million for the six months ended June 30, 2024.