International Housewares Retail Company (1373) H2 2025 earnings summary

Executive summary

• Revenue for FY2025 was HK$2,536.8 million, down 5.6% year-over-year, reflecting weaker consumer sentiment and increased e-commerce competition.

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

• Gross margin remained strong at 46%, with a net margin of 1.9%.

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

• Inventory turnover improved to 100 days from 103 days year-over-year.

• Trade payable turnover decreased to 36 days from 49 days year-over-year.

• Current ratio improved to 1.7 from 1.5, and gearing ratio decreased to 2.6% from 3.4%.

Outlook and guidance

• Focus on maintaining leading position in Hong Kong, Singapore, and Macau, with a cautiously optimistic medium- to long-term outlook.

• Continued enhancement of omni-channel platform and O2O shopping experience.

• 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.