Viva Goods Company (933) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2024 declined 6.3% year-over-year to HK$5,099.9 million, mainly due to declines in the multi-brand apparel and footwear segment, especially Clarks and Bossini.

• Net profit attributable to equity holders fell 14.5% year-over-year to HK$112.8 million, mainly from lower gross profit, reduced associate contributions, and asset impairments.

• Adjusted EBITDA rose 8.6% year-over-year to HK$536.9 million, driven by operational streamlining, restructuring, and cost controls.

• The Group maintained a net cash position and healthy liquidity, with net assets of HK$8,878.8 million as of 30 June 2024.

Financial highlights

• Gross profit margin improved to 46.5%, up from 45.8% year-over-year.

• Cash and cash equivalents increased to HK$1,644.7 million as of June 30, 2024.

• Current ratio was 1.6 and gearing ratio was 0 as of June 30, 2024, indicating solid liquidity and low leverage.

• Net profit attributable to equity holders: HK$112.8 million (down from HK$131.9 million prior year).

• Basic EPS: HK 0.99 cents; diluted EPS: HK 0.95 cents.

Outlook and guidance

• The Group remains cautiously optimistic, focusing on cost control, safeguarding cash flow, and prudent brand development amid global economic uncertainties.

• Plans to expand overseas markets, enrich the brand portfolio, and enhance consumer well-being.

• Management will closely monitor global economic and market trends, flexibly adjusting strategies to meet challenges and opportunities.