Convenience Retail Asia Limited · HKEX:831
Convenience Retail Asia — H1 2022 Earnings Presentation
33 slides from Convenience Retail Asia's earnings presentation, Aug 11, 2022
Slide 1: Convenience Retail Asia Limited 2022 Interim Results Announcement
Convenience Retail Asia Limited 2022 Interim Results Announcement 11 August 2022
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 Highlight 2022 First Half Financial Results Highlight 2022 Second Half Outlook Questions & Answers 3
Slide 4: Hong Kong Retail Market Key Highlight
HONG KONG RETAIL MARKET KEY HIGHLIGHT 4
Slide 5: Hong Kong Retail Sales
Hong Kong Retail Sales YOY % Total Retail Sales Value & Volume change 2022 June YTD Value: -2.6% 60 Volume: -5.6% 40 2.2 8.1 1.5 11.7 20 8.7 7.6 6.5 8.0 1.9 4.0 0 -1.2 -4.1 -20 -11.1 -14.6 -13.8 -1.6 -4.8 -12.3 -24.3 -17.6 -16.8 -40 -25.5 -60 2017 2018 2019 2020 2021 202201 202202 202203 202204 2022
Slide 6: MTR Latest Passenger Number
180,000 MTR Latest Passenger Number 2022 June YTD 2021 Dec YTD 2022 vs. 2021: -12% 2021 vs. 2020 : +24% 2022 vs. 2020: +3% 2021 vs. 2019: -9% 160,000 2022 vs. 2019: -31% 2021 vs. 2018: -15% 2022 vs. 2018: -30% 140,000 120,000 100,000 80,000 (unit in thousands) 60,000 Jan Feb Mar Apr May June July Au
Slide 7: Hong Kong 7-day Moving Average of COVID-19 Confirmed Cases
Hong Kong 7-day Moving Average of COVID-19 Confirmed Cases *Included COVID-19 cases reported from PCR & RAT tests Source: HK Centre for Health Protection Website 7
Slide 8: Impact Of The 5th Wave
Impact Of The 5th Wave The most disruptive Over 95% of staff vaccinated at beginning of February 2022 Demand for cakes dropped by 60% but demand for buns and breads continued to be strong Facing weekly disruptions in cross-border supply chain: Restrictions of cross-border drivers No impo
Slide 9: 2022H1 Actions
2022H1 Actions Despite disruption from COVID-19, we progressed well with our growth plan We continue to expand our networks for Saint Honore, Patisserie Mon cher and Zoff To cope with market demand, Saint Honore invested HK$20 million on a new production line to top up production capacity 9
Slide 10: 2022H1 Actions
2022H1 Actions Saint Honore’s Cake Easy membership program launched in Macau. Total membership now exceeded 1.1 million Saint Honore is celebrating its 50th anniversary in 2022 Patisserie Mon cher opened two new stores & launched its own online ordering platform 10
Slide 11: 2022H1 Actions
2022H1 Actions Leading brand among three major Japanese fast fashion eyewear players with differentiation in products and services Achieved positive growth in both top line and bottom line given the disruption of 5th wave Omicron variant Recruited substantial new customers and achieved record
Slide 12: Saint Honore Opened 8 New Stores in Hong Kong
Saint Honore Opened 8 New Stores in Hong Kong Store in Shing On Street, 西灣河成安街 Opened on 6 Jan 2022 Store in Fanling Town Centre, 粉嶺名都商埸 Opened on 30 Jan 2022 Store in Pak Tin Estate, Sham Shui Po 深水埗白田邨 Opened on 22 Mar 2022 12
Slide 13: Saint Honore Opened 8 New Stores in Hong Kong
Saint Honore Opened 8 New Stores in Hong Kong Store in King Lam Shopping Centre TKO, 將軍澳景林邨 Opened on 14 Apr 2022 Store in Queen’s Hills, Fanling 粉嶺皇后山 Opened on 14 Apr 2022 Store in Lei Tung Estate, 利東邨 Opened on 18 Apr 2022 13
Slide 14: Saint Honore Opened 8 New Stores in Hong Kong
Saint Honore Opened 8 New Stores in Hong Kong Store in Wu Kwong Street, Hung Hom 紅磡湖光街 Opened on 7 May 2022 Store in TKO Spot, Tseung Kwan O 將軍澳 TKO Spot Opened on 30 May 2022 14
Slide 15: Saint Honore Opened 2 New Stores in Macau
Saint Honore Opened 2 New Stores in Macau Store in Avenida da Praia Grande 澳門南灣分店 Opened on 11 Apr 2022 Store in Rua de Nam Keng, Taipa 澳門氹仔雄昌 Opened on 14 Feb 2022 15
Slide 16: O2O Business Model
O2O Business Model Customer Buying Process Store Network Awareness Consideration Decision Traffic into stores Transaction Repeat 16
Slide 17: Cake Easy exceeded 1,110,000 members
Macau Cake Easy Launched in Cake Easy exceeded September 2021 ; 1,110,000 members Exceeded 64,000 members O2O Lucky Draw e-Coupons e-Stamps e-Gifting 17
Slide 18: Re-inventing Strategy Lifting Customer Experience
Re-inventing Strategy Lifting Customer Experience 18
Slide 19: Patisserie Mon cher Increased to 6 Stores
Patisserie Mon cher Increased to 6 Stores Sogo, Causeway Bay Citysuper Harbour City, Tism Sha Tsui Citysuper New Town Plaza, Shatin opened on 1 Sep 2020 opened on 1 Apr 2021 opened on 15 Apr 2021 AEON STYLE, Mongkok Citysuper Times Square, Causeway Bay Tuen Mun Town Plaza, Tuen Mun opened on 1 Oct 2
Slide 20: New Collections & Services
New Collections & Services 20
Slide 21: Sharing The Happiness With Our Community
Sharing The Happiness With Our Community Donated To Love & Care the Elderly Rapid Antigen Test (RAT) Kits We sponsored the Cookie Campaign Collaborating with local charities to donate unsold bread & products to people in need 21
Slide 22: 2022 First Half Financial Results Highlight
2022 FIRST HALF FINANCIAL RESULTS HIGHLIGHT 22
Slide 23: Number of Stores
Number of Stores End of 1H2021 Opened Closed 1H2022 2021 Bakery Group 125 140 12 (1) 151 Saint Honore – Hong Kong 86 100 8 (1) 107 Saint Honore – Macau 9 10 2 - 12 Saint Honore – China 26 26 - - 26 Patisserie Mon cher 4 4 2 - 6 Zoff 11 13 - - 13 CRA Group 136 153 12 (1) 164 23
Slide 24: Group Turnover
Group Turnover 1,000 +11.1% 800 674 607 66 HK$ Million 600 59 400 548 608 200 0 2021 2022 Bakery Group Zoff 24
Slide 25: Group Gross Profit %
Group Gross Profit % 80 60 49.7 48.6 % of Turnover 40 20 0 2021 2022 25
Slide 26: Group Store Operating Expenses
Group Store Operating Expenses 50 -2.3% 40 33.8 31.5 % of Turnover 30 20 10 0 2021 2022 26
Slide 27: Group Net Profit
Group Net Profit (HK$ Million) 1H2021 1H2022 Change Continuing Operations 17 17 -1.5% Discontinued Operation 6 - N/A Total Group Net Profit 23 17 -27.2% 27
Slide 28: 1H2022 Financial Results Highlight
1H2022 Financial Results Highlight 1H2021 1H2022 Change Number of Stores 136 164 28 Group Turnover (HK$M) 607 674 11.1% Group Net Profit (HK$M) - Continuing Operations 17 17 -1.5% - Included Discontinued Operation 23 17 -27.2% Net Profit as % of Turnover - Continuing Operations 2.8% 2.5% -0.3% - Inc
Slide 29: 2022 Second Half Outlook
2022 SECOND HALF OUTLOOK 29
Slide 30: 2022 – The Year of Disruptions
2022 – The Year of Disruptions 1. COVID-19 2. Supply Chains 3. Logistics & Cross-border Restrictions 4. Shortage of Labour 5. Inflation 6. Rising Interest Rates 7. Potential Economic & Financial Downturn 8. Quality of Life & The Way We Live 30
Slide 31: The pandemic has not settled into a seasonal pattern
The pandemic has not settled into a seasonal pattern - new variants have driven a rapid succession of recent waves Weekly estimates for Covid-19 positivity rates @ England @ Wales 8 Northern Ireland § Scotland 10% 2nd wave Alpha variant Delta Omicron _Omicron2 Omicron 3 Guardian graphic-ONS Covid-19
Slide 32: To Conclude
To Conclude 1. H1 of 2022 the most disruptive 6 months ever faced by the group 2. Grateful and thankful for preparation, quick actions, right strategies and great teamwork to overcome the challenges 3. The company as solid and healthy as at the beginning of 2022 4. H2 2022 will not be easy due to th
Slide 33: Thank You !
THANK YOU ! 33
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