Blue Moon Group (6993) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2024 rose 40.9% year-over-year to HK$3,131.2 million, driven by strong growth across all product categories and sales channels, especially online sales.

• Net loss attributable to equity holders widened to HK$663.7 million from HK$167.5 million year-over-year, mainly due to higher selling and distribution expenses.

• Gross profit increased 49.6% to HK$1,836.4 million, with gross margin improving to 58.7% from 55.2% due to lower raw material costs and improved product mix.

• Interim dividend of HK4.0 cents per share declared for the period.

Financial highlights

• Online sales surged 56.9% year-over-year, now accounting for 72.6% of total revenue.

• Fabric care products contributed 88.4% of revenue, with 41.3% growth; personal hygiene products grew 59.6%.

• Selling and distribution expenses more than doubled to HK$2,201.4 million, reflecting increased promotional activities and e-commerce expansion.

• Operating loss widened to HK$938.5 million from HK$431.4 million year-over-year.

• Basic and diluted loss per share was HK12.00 cents, up from HK3.01 cents in the prior year.

Outlook and guidance

• Plans to further diversify product offerings and launch new products in fabric care, personal hygiene, and home care.

• Focus on strengthening omni-channel sales, especially online and emerging platforms, and deepening offline channel penetration.

• Continued investment in digitalisation, manufacturing upgrades, and knowledge-based marketing.

• Commitment to stable dividend policy and sustainable shareholder returns.