Viva Goods Company (933) H2 2025 earnings summary

Executive summary

• Achieved a turnaround to net profit of HK$170.4 million in 2025 from a net loss of HK$70.4 million in 2024, driven by improved cost management and reduced impairment charges in the multi-brand apparel and footwear segment.

• Revenue decreased by 1.2% year-over-year to HK$10,299.5 million, mainly due to lower sales in Clarks and Bossini.

• Adjusted EBITDA rose 46.5% year-over-year to HK$1,331.1 million, reflecting significant operational efficiency gains.

• Board recommends a special dividend of HK$0.008 per share for 2025.

Financial highlights

• Revenue: HK$10,299.5 million (down 1.2% year-over-year).

• Gross profit: HK$4,779.4 million (up 0.3% year-over-year); gross margin improved to 46.4%.

• Net profit attributable to equity holders: HK$170.4 million (from a loss of HK$70.4 million in 2024).

• Adjusted EBITDA: HK$1,331.1 million (up 46.5% year-over-year).

• Basic EPS: 1.47 HK cents (2024: loss per share 0.62 HK cents).

• Net cash inflow from operations: HK$1,062.5 million (2024: HK$343.2 million).

• Gearing ratio: 0.2 (2024: 0.1); current ratio: 1.2 (2024: 1.4).

Outlook and guidance

• Global economic growth expected to remain moderate at 3.1% in 2026, with inflationary pressures easing.

• Focus on deploying in high-growth markets and channels, with Clarks optimization largely complete and other consumer businesses still in adjustment phase.

• Losses in non-core consumer businesses expected to reduce year by year and remain controllable.

• Commitment to product innovation, service upgrades, and differentiated marketing to build resilience.