Large Expansion for Profitable Franchise Bakery, Coffee Brand and Beverage Company Operating in the USA & China: Chanson International Holding (Nasdaq: CHSN)

$CHSN: First Half of 2024 Total Revenue of $7.5 Million and Operating at a Profit.
- Well Established Provider of Popular Bakery, Seasonal and Beverage Products.

- Positioned in the Global Bakery and Beverages Industries, Expected to Reach $692.9 Billion and $3.85 Trillion, Respectively, by 2032.

- Sales Through Multiple Locations in China and The United States, Plus On-Line Digital Platforms.

- Focused on Making Healthy, Nutritious and Ready-to-Eat Food Through Advanced Facilities Based on In-Depth Industry Research.

- Franchise Expansion of Coffee Brand Soul Song in China.

- Store Expansion to a Total of 60 Direct-Operate Stores Across China and the United States by the End of 2024.

- More Cash Than Total Debt, Reflecting Financial Stability and Reduced Risk for Investors.

Chanson International Holding (Nasdaq: CHSN) is a provider of bakery, seasonal, and beverage products through its chain stores in China and the United States. CHSN currently manages numerous stores in China, and in New York City while selling on digital platforms and third-party online food ordering platforms. CHSN offers not only packaged bakery products but also made-in-store pastries and eat-in services, serving freshly prepared bakery products and extensive beverage products. CHSN aims to make healthy, nutritious, and ready-to-eat food through advanced facilities based on in-depth industry research, while creating a comfortable and distinguishable store environment for customers. The CHSN dedicated and highly-experienced product development teams constantly create new products that reflect market trends including vegan options to meet current customer demand.

CHSN PRC stores manufacture the majority of bakery products in their central factory located in Urumqi, Xinjiang, China, prepare beverage products within the stores, and contract third-party manufacturers to produce seasonal products. The CHSN U.S. Stores bake bakery products, prepare breakfast, lunch and all-day brunch, bar food, and other light meals for eat in, and make beverage products all within their kitchen in the store. To ensure the quality and safety of their products, the PRC Stores and the U.S. Stores procure raw materials, including flour, eggs, and milk, from renowned suppliers with a record of consistently supplying high-quality raw materials over decades in the food industry. In addition, the CHSN PRC Stores and the U.S. Stores have implemented a rigorous quality control system covering their entire operation process and mandated internal training to improve their employees' awareness and knowledge of food safety.

The global bakery products market reached $515.9 billion in 2023 and is projected to grow to $692.9 billion by 2032 at a CAGR of 3.2%. Similarly, the beverages market, valued at $2.4 trillion in 2023, is estimated to reach $3.85 trillion by 2032, growing at a CAGR of 5.4%. These robust market trends highlight significant growth potential for CHSN, strategically positioned to capitalize on these expanding industries with innovative offerings and global reach.

Franchise Expansion of Coffee Brand Soul Song

On November 25th CHSN announced a collaboration with a leading local enterprise to expand its coffee brand, Soul Song, through a franchise operation model in Yili, Xinjiang, China. This milestone marks significant progress in the development of the CHSN Soul Song brand, further deepening its market presence and extending its brand influence in the Xin Jiang region.

In July 2024, CHSN celebrated the grand opening of a Soul Song cafe in partnership with Xinjiang Hengtai Investment Co., Ltd. at the scenic Nalati National Tourist Resort in Yili, Xinjiang. Soul Song's innovative "blend bean concept" highlights the art of blending, offering diverse flavors to suit every customer's unique taste. The CHSN cafe quickly became a must-visit destination within the resort, achieving daily sales of RMB 30,000, a record for single-day coffee-related sales at the location. This marks a CHSN debut in adopting a franchise model, partnering with distinguished local enterprises for mutual growth and success. Building on its growing influence in the Yili region, CHSN plans to open five additional Soul Song cafes by 2025.

CHSN Makes Significant Strides in Store Expansion

On November 21st CHSN announced significant progress in its store expansion efforts, reaching a total of 60 direct-operate stores across China and the United States by the end of December 2024. This milestone reflects the CHSN commitment to accelerating business growth and enhancing its market presence in both China and the United States. In addition, seven more CHSN stores are currently in the process of securing business licenses, highlighting the strong momentum in CHSN expansion.

CHSN provides exceptional service and creating a cozy cafe ambiance, fostering relaxation and meaningful social interactions. Surpassing its previous goal of opening 3 to 5 directly operated stores annually, CHSN is now leveraging its exceptional in-store service to accelerate growth and scale operations at an unprecedented pace.

Mr. Gang Li, Chairman of the Board of Directors and Chief Executive Officer of CHSN, commented, "We believe our commitment to exceptional in-store service and high-quality offerings is the cornerstone of our success, ensuring high operational standards while expanding our market reach. Our expansion strategy allows us to optimize resource allocation and respond to customer demands more swiftly and effectively, ultimately driving growth in key markets. As part of our long-term vision, we are dedicated to enhancing our brand presence across China and the United States, delivering outstanding dining experiences to a broader audience. This strategy not only accelerates store openings but also strengthens our position as a trusted and innovative leader in the bakery and beverage industry. We are confident that our focus on service excellence and quality will continue to drive sustainable growth and customer loyalty."

First Half of Fiscal Year 2024 Financial Results

On September 27th CHSN announced its unaudited financial results for the six months ended June 30, 2024.

CHSN First Half of Fiscal Year 2024 Financial Summary

Total revenue was $7.5 million, compared to $8.8 million for the same period of last year.

Gross profit was $3.1 million, compared to $4.3 million for the same period of last year.

Gross margin was 41.5%, compared to 49.2% for the same period of last year.

Net income was $0.02 million, compared to $0.3 million for the same period of last year.

Basic and diluted earnings per share were $0.002, compared to $0.027 for the same period of last year.

CHSN First Half of Fiscal Year 2024 Financial Results

CHSN revenue from the China Stores was $6.5 million for the six months ended June 30, 2024, which decreased by or 7.3%, from $7.0 million for the same period of last year. The decrease was mainly due to the decreased revenue from bakery products as well as from other products.

CHSN revenue from bakery products was $5.9 million for the six months ended June 30, 2024, which decreased by 7.3%, from $6.4 million for the same period of last year. Revenue from other products was $0.58 million for the six months ended June 30, 2024, which decreased by 7.0%, from $0.62 million for the same period of last year. The decrease was mainly due to decreased revenue from seasonal products, which was partially offset by increased revenue from beverage products. Revenue from seasonal products was $0.36 million for the six months ended June 30, 2024, which decreased by 16.4% from $0.44 million for the same period of last year.

CHSN revenue from the U.S. Stores was $1.0 million for the six months ended June 30, 2024, which decreased by 42.2% from $1.8 million for the same period of last year. The decrease was mainly due to decreased revenue from beverage products and eat-in services, which was partially offset by the slightly increased revenue from bakery products.

CHSN revenue from bakery products remained relatively stable at $0.24 million for the six months ended June 30, 2024, with a slight increase by 2.6% from $0.23 million for the same period of last year. The increase was due to the increased revenue from bakery products of approximately $0.1 million, generated by Chanson 3rd Ave and Chanson Broadway.

CHSN revenue from beverage products was $0.6 million for the six months ended June 30, 2024, which decreased by 37.2% from $1.0 million for the same period of last year.

CHSN revenue from eat-in services was $0.2 million for the six months ended June 30, 2024, which decreased by 69.7% from $0.6 million for the same period of last year.

For more information on $CHSN visit: http://ir.chanson-international [http://ir.chanson-international.net/].net/
Media Contact
Company Name: Chanson International Holding
Contact Person: Investor Relations Department
Email: Send Email [http://www.universalpressrelease.com/?pr=large-expansion-for-profitable-franchise-bakery-coffee-brand-and-beverage-company-operating-in-the-usa-china-chanson-international-holding-nasdaq-chsn]
Phone: 86-0991-2302709
Address:No. 26 Culture Road Tianshan District
City: Urumqi
Country: China
Website: http://ir.chanson-international.net



This release was published on openPR.