International Housewares Retail Company (1373) H2 2025 earnings summary

Executive summary

• Revenue declined 5.6% year-over-year to HK$2,536.8 million, reflecting weaker consumer sentiment and increased e-commerce competition.

• Profit attributable to owners dropped 51.4% year-over-year to HK$47.7 million, excluding government grants.

• Maintained a strong cash position with HK$284.6 million in cash and cash equivalents as of 30 April 2025.

• Total dividend for the year was HK5.5 cents per share, down from HK11.2 cents per share last year.

Financial highlights

• Gross profit margin was 46.0% for the year, compared to 46.9% in the prior year.

• Operating profit fell to HK$73.9 million from HK$137.4 million year-over-year.

• Net profit for the year was HK$42.2 million, down from HK$99.8 million year-over-year.

• Basic and diluted EPS were HK6.6 cents, compared to HK14.0 cents last year.

• Cash and cash equivalents decreased to HK$284.6 million from HK$338.5 million as of 30 April 2024.

Outlook and guidance

• Cautiously optimistic medium- to long-term outlook, focusing on Hong Kong, Singapore, and Macau.

• Plans to enhance operational efficiency, control costs, and adapt to "light consumption, speed retailing" trends.

• Anticipates benefits from rent negotiations and cost controls to materialize over the next one to two years.

• Expects new consumer demand from Hong Kong's northern metropolis development and population inflow policies.