Viva Goods Company (933) H1 2026 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2026 rose 6.4% year-over-year to HK$5,119.5 million, driven by strong ecommerce demand, expanded distribution, and growth in multi-brand apparel and footwear, especially Clarks and Haglöfs.

• Adjusted EBITDA surged 43.9% to HK$877.7 million, reflecting product/pricing realignment, operational efficiency, and increased share of profits from Li Ning Co.

• Net profit attributable to equity holders increased 48.1% year-over-year to HK$268.8 million, mainly due to cost optimization, operational efficiency, and higher share of profit from Li Ning Co.

• Clarks contributed 84.3% of total revenue, with a 4.0% increase to HK$4,313.2 million, supported by GBP appreciation and improved direct-operated and online channels.

• Gross profit increased 14.9% to HK$2,534.4 million, with gross margin improving to 49.5% from 45.9% due to US tariff relief and effective cost control.

Financial highlights

• Total revenue for 1H2026 was HK$5.12 billion, up from HK$4.81 billion in 1H2025.

• Gross profit margin improved to 49.5%, up 3.6 percentage points year-over-year.

• Net profit attributable to equity holders reached HK$269 million, with net profit margin at 5.3%.

• Adjusted EBITDA was HK$878 million, up from HK$610 million in 1H2025.

• Basic EPS was 2.30 HK cents, up from 1.57 HK cents year-over-year.

Outlook and guidance

• The group expects global economic growth to slow to 2.5% in 2026, with ongoing geopolitical, energy, and policy risks.

• Haglöfs is expected to achieve profitability within the year and become a new growth engine.

• Strategic focus on rebranding, operational efficiency, overseas market expansion, and maintaining healthy cash flow.