Viva Goods (933) investor relations material

Executive summary

• Revenue for 1H2025 was HK$4.81 billion, down 5.7% year-over-year, mainly due to declines in multi-brand apparel and footwear, especially Clarks and Bossini.

• Adjusted EBITDA increased 13.6% to HK$610.1 million, and profit attributable to equity holders rose 60.9% to HK$181.5 million, driven by enhanced cost controls and operational efficiency.

• Major leadership changes included the appointment of a new Co-CEO and the privatization of Bossini, enhancing operational flexibility.

• Clarks returned to profitability with improved gross margin through strategic procurement and product mix optimization.

• Expansion initiatives included a new flagship store for Testoni in Milan, exclusive rights for China's Pickleball Series Events, and increased stake in Li Ning Co.

Financial highlights

• Adjusted EBITDA reached HK$610.1 million, up 13.6% period-on-period.

• Profit attributable to equity holders was HK$181.5 million, up HK$68.7 million from 1H2024.

• Overall gross profit margin was 45.9%, down 0.6 p.p. year-on-year, with gross profit at HK$2,206.0 million.

• Selling and distribution expenses fell by 3.1 p.p. to 32.1% of revenue; administrative expenses dropped by 1.8 p.p. to 13.7%.

• Share of profits from associates and joint ventures rose to HK$258.4 million, driven by increased ownership in Double Happiness.

Outlook and guidance

• The group expects continued macroeconomic headwinds, including weak global consumer confidence and slow economic growth in key markets.

• Focus on rebranding legacy brands, expanding overseas, and enriching the brand portfolio.

• Plans to open about 20 Haglöfs stores in Mainland China within the year.

• Synergy expected between sports experience and consumer goods segments, leveraging exclusive sports event rights.

• Prudent cash flow management and flexible business strategies will be maintained to address uncertainties.