Truly International (732) H1 2024 earnings summary

Executive summary

• Revenue rose 18.3% year-over-year to HK$8,585 million, driven by a 44.3% increase in smartphone-related product sales.

• Gross profit increased 5.6% to HK$697 million, but gross margin declined by 1.0 percentage point to 8.1% due to higher sales of lower-margin products.

• Profit attributable to owners grew 3.9% to HK$174.2 million; basic EPS was 5.51 HK cents.

• Interim dividend of 5 HK cents per share declared, unchanged from last year.

• EBITDA decreased 7.8% year-over-year to HK$987.4 million.

Financial highlights

• Other income rose 6.1% to HK$80.6 million, mainly from increased government subsidies.

• Net other losses of HK$17.3 million, compared to net gains of HK$56.4 million in 2023, due to lower FX gains and higher loss on asset disposals.

• Administrative expenses increased 10.9% to HK$242.4 million; distribution and selling expenses fell 14.4% to HK$154.2 million.

Outlook and guidance

• Management expects continued year-on-year growth in 2024, with smartphone-related products showing recovery and non-smartphone segments remaining stable.

• Cautiously optimistic stance maintained amid global economic uncertainties and evolving supply chain dynamics.