Convenience Retail Asia Limited · HKEX:831
Convenience Retail Asia — FY2023 Earnings Presentation
26 slides from Convenience Retail Asia's earnings presentation, March 2024
Slide 1: Convenience Retail Asia Limited Annual Results Presentation
Convenience Retail Asia Limited 利亞零售有限公司 (Stock Code: 831.HK) Annual Results Presentation March 2024
Slide 2: Presentation Disclaimer
Presentation Disclaimer This Document (the “Document”) is for information purposes only. This Document is not intended to form the basis of any investment decision nor does it constitute a recommendation or advice as to how the reader should act on any matter. The information in this Document is an
Slide 3: Agenda
Agenda • Hong Kong Retail Market Key Highlights • Business Highlights o Bakery Segment o Eyewear Segment • Financial Highlights • Q&A 3
Slide 4: Hong Kong Retail Market Key Highlights
Hong Kong Retail Market Key Highlights 4
Slide 5: 2023 Hong Kong Retail Market
2023 Hong Kong Retail Market Total Retail Sales (HKD'm) 36,518 40,000 36,176 36,328 35,000 33,835 33,093 30,000 25,000 20,000 15,000 10,000 5,000 0 Apr-22 Oct-22 Oct-23 Jan-22 Mar-22 Jan-23 Mar-23 Apr-23 Jan-24 Jul-22 Aug-22 Jul-23 Aug-23 Jun-22 Jun-23 May-22 Dec-22 May-23 Dec-23 Feb-22 Sep-22 Nov-2
Slide 6: 2023 Hong Kong Retail Market
2023 Hong Kong Retail Market Total Bread, pastry, confectionery (HKD'm) Total optical shops (HKD'm) 1,600 MCF 350 1,343 314 1,400 CNY 300 1,200 1,054 986 250 226 1,000 778 798 192 194 800 702 200 169 600 150 400 100 200 50 0 0 Jan-22 Mar-22 Jan-23 Mar-23 Jan-24 Jul-22 Jul-23 May-22 May-23 Sep-22 Nov
Slide 7: 2023 Hong Kong Retail Market
2023 Hong Kong Retail Market 575,000 on 600,000 Hong Kong residents arrival vs departure Oct 23, 2023 507,000 on Departure Dec 23, 2023 Arrival 500,000 400,000 300,000 200,000 194,000 on Dec 23, 2023 100,000 0 15/1/2023 29/1/2023 12/2/2023 26/2/2023 12/3/2023 26/3/2023 23/4/2023 21/5/2023 18/6/2023
Slide 8: MTR Patronage Figures
MTR Patronage Figures MTR Patronage Figures 160,000 150,000 140,000 130,000 Year 2018 120,000 Year 2019 110,000 Year 2020 100,000 Year 2021 Year 2022 90,000 Year 2023 80,000 Year 2024 70,000 2023 vs Prior years 60,000 2023 vs. 2022: +19% Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec 2023 vs. 202
Slide 9: Labour cost impacting retail recovery
Labour cost impacting retail recovery Source: Census and Statistics Department 9
Slide 10: 2023 Business Highlights
2023 Business Highlights 10
Slide 11: Bakery Segment
Bakery Segment • Retail sales have been soft since the borders re-opened in February 2023 • Cake sales declined as consumers spend weekends in Mainland China or overseas • Category diversification to capture new group of customers and lift gross margin • Online sales becoming a critical channel, par
Slide 12: Bakery Network Expansion
Bakery Network Expansion Choi Ming Centre, TKO Heung Sze Wai Square, Tai Po Ho Shun Fook Building, Yuen Long Tai Yuen Market, Tai Po Opened on 4 January 2023 Opened on 1 February 2023 Opened on 9 March 2023 Opened on 3 September 2023 Mong Kok East Station, KLN Lei Yue Mun Plaza,
Slide 13: Online Branding and Marketing Campaigns
Online Branding and Marketing Campaigns 13
Slide 14: New Product Development
New Product Development areas AO ERKDB RA | re i Ho _S Fa gaParecln Buses] azonee axa
Slide 15: New Product Development
New Product Development COOKIE GIFT BOX
Slide 16: 2024 Key Initiatives
2024 Key Initiatives Bakery 1 Protect market share in core categories with tactical promotion and new product development 2 Expand product offering to increase basket size and give consumers a reason to trade up 3 Selective store expansion strategy (community malls; in-store bakery) 4 New store desi
Slide 17: Eyewear Segment
Eyewear Segment • Hong Kong residents travelling to Mainland China has caused a decline in foot traffic • GBA eyewear retailers are disruptive to local eyewear retailers • Favourable HKD/JPY has also caused some consumers to purchase in Japan • Store network positioned to capture inbound tourists se
Slide 18: Eyewear Network Expansion (Hong Kong)
Eyewear Network Expansion (Hong Kong) • The Wai, Tai Wai • Opened on 22 July 2023 • Wai Fung Plaza, Mong Kok • Opened on 8 December 2023 18
Slide 19: Eyewear Singapore Expansion
Eyewear Singapore Expansion Orchard Central ION Orchard JEM PLQ Funan 19
Slide 20: New Product Launches
New Product Launches ZOFF COLLECTIONS CHARACTER / DISNEY FASHION 20
Slide 21: 2024 Key Initiatives
2024 Key Initiatives Eyewear 1 Annual brand campaign to boost brand awareness and promote Zoff’s professional service 2 New store design in partnership with Japan to create a unique customer experience 3 Focus on simple pricing structure to make customer decision easier 4 Leverage on Zoff Japan on g
Slide 22: 2023 Financial Results Highlights
2023 Financial Results Highlights 22
Slide 23: FY23 Group Financial Results
FY23 Group Financial Results Reported revenue: Gross profit %: Core operating profit: Basic earnings per share: $1,487.1m 53.4% $73.0m HK 7.4 cents (FY22: HK 8.7 cents) (FY22: $1,462.9m) (FY22: 50.6%) (FY22: $83.8m) +1.7% -12.9% Bakery Turnover: Eyewear Turnover: Net profit after tax: Final dividend
Slide 24: Prudent store network expansion
Prudent store network expansion 31 Dec 22 31 Dec 23 Net change Bakery segment 160 161 1 • Saint Honore – HK&MC 127 134 7 • Saint Honore – Mainland China 26 21 (5) • Patisserie Mon cher 7 6 (1) Eyewear - Zoff 14 15 1 CRA Group 174 176 2 24
Slide 25: Resilient despite adverse market conditions
Resilient despite adverse market conditions Core Operating Profit (HKD'm) 100.0 80.0 22.6 60.0 18.7 40.0 61.2 54.3 20.0 - FY22 FY23 Bakery Eyewear 25
Slide 26: Q&A
Q&A 26
Convenience Retail Asia — FY2023 Earnings Presentation on 6ix