Giordano International Limited · HKEX:709
Giordano International — FY2023 Earnings Presentation
20 slides from Giordano International's earnings presentation, Mar 12, 2024
Slide 1: 2023 Annual Results Announcement
2023 Annual Results Announcement March 12, 2024
Slide 2: Overview
Overview • Group revenue +1.9% to HK$3,873 million (2022: HK$3,799 million) (+3.8% at constant exchange rates) Global store count -52 to 1,822 (2022: 1,874) Group same-store sales +6.9% • Gross margin +1.9pp to 58.4% (2022: 56.5%) Retail gross margin +1.1pp to 60.6% (2022: 59.5%) • OPEX to rev
Slide 3: Revenue by market
Revenue by market • +1.9% to HK$3,873 million (2022: HK$3,799 million) • +3.8% at constant exchange rates (In HK$ million) Reported growth in all markets 4,000 17.4% 16.7% 3,500 Gulf Cooperation Council Gulf Cooperation Council 3,000 38.0% 38.0% 2,500 Southeast Asia Southeast Asia and Australia and
Slide 4: Revenue by channel
Revenue by channel Offline (In HK$ million) • +4.7%, despite number of stores 4,000 -2.6% 10.9% 13.5% • Group same-store sales +6.9% 3,500 Wholesale 12.1% Wholesale • Sales per sq. ft. +3.5% Online 11.6% 3,000 Online Online 2,500 • +7.1% • Continued growth in Mainland 2,000 China 77.0% 1,500 Offline
Slide 5: Gross profit
Gross profit • Gross margin +1.9pp to 58.4% (2022: 56.5%) • Increased selling prices of new merchandise and fewer discounts on evergreen products 2022 Currency 2023 gross Product Selling translation gross (In HK$ million) profit costs prices Volume Miscellaneous difference profit Southeast Asia and
Slide 6: Operating expense
Operating expense • Operating expense-to-revenue ratio 47.2% • Continued cost control after COVID-19 (In HK$ million) OPEX to revenue ratio 60.0% 2022: 47.2% 2023: 47.2% 600 50.4% 48.4% 47.6% 50.0% 46.7% 46.3% 46.6% 46.6% 45.6% 500 8.8% 7.7% 40.0% 7.4% 7.6% 8.1% 7.4% 400 8.3% 7.8% 10.8% 11.6% 11.8%
Slide 7: Changes in PATS
Changes in PATS Net margin +1.8pp to 8.9% (2022: 7.1%) (In HK$ million) 2022 PATS 268 Mainland China 62 Hong Kong and Macau 49 Gulf Cooperation Council 18 South Korea 10 Taiwan 9 Southeast Asia and Australia (20) Wholesale to overseas franchisees/subsidiaries (38) Headquarter, finance expense, incom
Slide 8: Market update: Greater China
Market update: Greater China Hong Kong Festival Walk (In HK$ million) Revenue 1,600 Mainland China 1,400 Hong Kong Hong Kong • Volatile business and Macau and Macau 1,200 380 286 environment 1,000 Taiwan Taiwan • Profitable in 2023 Mainland China 华山环宇城 800 440 466 • Online Continued focus 600 • Of
Slide 9: Market update: Southeast Asia
Market update: Southeast Asia Malaysia 32nd Anniversary (In HK$ million) Revenue Thank You Day event 1,600 1,400 Others 26 Vietnam 75 Others 28 Indonesia and Thailand Vietnam 90 Singapore 195 Singapore • Growth momentum 1,200 207 Malaysia 164 Malaysia remains 1,000 189 800 Thailand 272 Thailand Sing
Slide 10: Market update: Gulf Cooperation Council
Market update: Gulf Cooperation Council (In HK$ million) 2023 2022 Revenue 675 635 Franchised stores 40 38 Direct-operated stores 138 134 Store at year-end 178 172 • Brand image enhancement • Continued business improvement after tourist arrivals Dubai Al Ghurair Centre Qatar Tawar Mall Dubai Silicon
Slide 11: Inventories
Inventories • Inventory turnover on cost -27 days to 108 days (2022: 135 days) Stringent purchase control • System inventories -20.6% At December 31 (In HK$ million) 2023 2022 Inventories owned by the Group 474 612 Inventories held by 48.5% South Korea joint venture 182 202 Inventories held by fra
Slide 12: Changes in net cash
Changes in net cash Cash conversion rate 109% (2022: 99%) (In HK$ million) 2023 2022 Net cash at January 1 948 875 Cash flow from operations 500 392 Dividends paid to NCI (75) (2) Dividends paid (514) (292) Proceeds from issue of shares 47 3 Share repurchases - (3) Exchange difference (1) (25) Cash
Slide 13: Outlook
Outlook Strategy to mitigate business risks • Geographical diversification • Cost control • Lean balance sheet discipline Brand equity • Pricing, product innovation, store upgrades and marketing investment Franchising and licensing • Overseas franchised store count +27 stores (mainly India +29 store
Slide 14: Product
Product Liquid Touch 5A Goose Down Jacket March 12, 2024 Giordano 2023 Annual Results Announcement 14
Slide 15: Emerging Markets
Emerging Markets India Stores at December 31 Press Conference 50 stores milestone (+29 stores) 2023 2022 Southeast Asia 190 175 South Korea 120 143 South Asia 69 40 Africa 24 19 Other markets 21 20 Total 424 397 Algeria Canada Grand Opening Event New Franchise Partner City Center Shopping Center Mar
Slide 16: Advertising and marketing
Advertising and marketing South Korea March 12, 2024 Giordano 2023 Annual Results Announcement 16
Slide 17: Advertising and marketing
Advertising and marketing Singapore “Made for Foodies” Old Chang Kee Collaboration Campaign Malaysia ODK MONKET Collaboration Campaign March 12, 2024 Giordano 2023 Annual Results Announcement 17
Slide 18: Advertising and marketing
Advertising and marketing “Happiness Is…” Collection March 12, 2024 Giordano 2023 Annual Results Announcement 18
Slide 19: Revenue
Revenue (In HK$ million) 2023 2022 Change Mainland China 664 668 (0.6%) Hong Kong and Macau 623 586 6.3% Taiwan 440 466 (5.6%) Greater China 1,727 1,720 0.4% Indonesia 739 696 6.2% Thailand 272 234 16.2% Singapore 195 207 (5.8%) Malaysia 164 189 (13.2%) Vietnam 75 90 (16.7%) Australia 20 20 Flat Cam
Slide 20: Store portfolio
Store portfolio Retail floor space Stores (sq. ft. in thousands) at December 31 at December 31 2023 2022 2023 2022 Taiwan 168 182 161 173 Mainland China 143 158 114 124 Hong Kong and Macau 41 42 53 55 Greater China 352 382 328 352 Indonesia 238 233 326 296 Thailand 156 156 112 110 Malaysia 88 86 85
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