Herbs Generation Group Holdings (2593) H2 2024 earnings summary

Executive summary

• FY2024 revenue fell 2.3% YoY to HK$245.5m; profit declined 67.2% to HK$13.0m, including HK$19.2m of one-off listing expenses. Adjusted net profit was HK$32.1m, down 18.6%.

• Retail expansion supported 16.3% growth in retail sales, but wholesale weakness and higher depreciation weighed on results; 10 shops opened during FY2024.

Financial highlights

• Revenue was HK$245.490m vs HK$251.224m in FY2023; gross profit was HK$182.056m vs HK$185.444m.

• Operating profit was HK$19.813m vs HK$48.252m; profit before tax was HK$18.677m vs HK$47.282m; net profit was HK$12.965m vs HK$39.502m.

• Adjusted net profit, excluding HK$19.183m listing expenses in FY2024, was HK$32.148m vs HK$39.502m in FY2023, down 18.6%.

• Other income rose to HK$1.793m from HK$0.522m, including a government grant of HK$1.106m and bank interest income of HK$0.431m in FY2024.

Outlook and guidance

• 2025 priorities include expanding the retail network, enhancing e-commerce, diversifying B2B partnerships, and investing in product innovation.

• Opportunities to expand into the PRC are being explored for 2025; market entry will be measured and tailored to local regulatory, cultural, and competitive conditions.

• Capital expenditures are expected to rise with business growth, funded by operating cash flow and global offering proceeds.