Giordano International Limited · HKEX:709
Giordano International — H1 2023 Earnings Presentation
15 slides from Giordano International's earnings presentation, Aug 10, 2023
Slide 1: 2023 Interim Results Announcement
2023 Interim Results Announcement August 10, 2023
Slide 2: Overview
Overview • Group sales up 5.0% to HK$1,970 million (2022: HK$1,877 million). All three major markets, Greater China (+2.5%), Southeast Asia (+5.5%), and the Gulf Cooperation Council (+10.4%), reported growth. Global store count was 1,798 (2022: 1,940). • Gross margin up by 3.6 pp to 58.7% (2022: 55.
Slide 3: Sales by channel
Sales by channel (In HK$ million) Offline 2,000 11.1% • +10.3% 1,800 Wholesale to 15.2% • Sales per sq. ft. +12.8% franchisees Wholesale to 11.4% 1,600 Online franchisees Online 11.0% Online • +8.2% 1,400 • Driven by Mainland China 1,200 Wholesale to franchisees 1,000 • -23.2% 800 77.5% • Large ship
Slide 4: Sales by region
Sales by region Group revenue grew by 5.0% to HK$1,970 million (1H22: HK$1,877 million), or 7.9% on a constant dollar basis. (In HK$ million) 2,000 1,800 18.3% Gulf Cooperation Council 17.4% 1,600 Gulf Cooperation Council 1,400 37.3% 37.1% 1,200 Southeast Asia Southeast Asia and Australia and Austra
Slide 5: Gross profit
Gross profit Higher selling prices and fewer discounts drove the Group’s gross profit increase. 1H22 Translational 1H23 gross Product Selling exchange gross (In HK$ million) profit costs prices Volume impact Miscellaneous profit Southeast Asia and Australia 416 (9) 36 11 (10) 2 446 Gulf Cooperation
Slide 6: Operating expense
Operating expense Operating expense-to-sales ratio was 46.6% (1H22: 47.5%), reflecting efficiency gains. (In HK$ million) OPEX to sales (%) 700 60.0% 1H22: 47.5% 1H23: 46.6% 600 48.4% 47.6% 46.8% 46.6% 46.6% 50.0% 46.1% 500 40.0% 8.5% 7.4% 7.6% 8.2% 7.4% 400 7.9% 30.0% 10.8% 11.5% 11.6% 12.1% 11.5%
Slide 7: Changes in PATS
Changes in PATS Net margin hit 9.6% (1H22: 5.2%). (In HK$ million) Reported PATS for the six months ended June 30, 2022 97 Mainland China 38 Hong Kong and Macau 36 Taiwan 21 Gulf Cooperation Council 13 Southeast Asia and Australia 12 South Korea 4 Income taxes, non-controlling interests, finance exp
Slide 8: Market update: Greater China
Market update: Greater China Mainland China • Swung from significant loss to minor (In HK$ million) Sales 900 profit • Online Sustainable growth 800 Taiwan Taiwan • Offline Reduced OPEX 226 700 218 • Wholesale Reduced stores YOY 600 Hong Hong Hong Kong and Macau 500 Kong and Kong and • Swung f
Slide 9: Market update: Southeast Asia and Australia
Market update: Southeast Asia and Australia (In HK$ million) Sales Indonesia • Growth momentum continues Others 13 700 Vietnam 37 Others 12 • Successful multi-brand strategy Singapore Vietnam 44 600 91 Singapore Malaysia 103 Thailand 500 94 Malaysia • Strong sales growth 102 Thailand • Buoyed by sur
Slide 10: Market update: Gulf Cooperation Council
Market update: Gulf Cooperation Council Sales and profit growth were substantial. (In HK$ million) 1H23 1H22 Sales 361 327 Franchised stores 38 36 Direct-operated stores 134 137 Store at period-end 172 173 • Brand image enhancement • Well-executed local marketing campaigns • Early Hajj • Continued d
Slide 11: Inventories
Inventories • Reduction in Group inventory balance and turnover days on cost • System inventories remain healthy At June 30 December 31 June 30 (In HK$ million) 2023 2022 2022 Inventories owned by the Group 501 612 541 Inventories held by 48.5% South Korea joint venture 205 202 222 Inventories held
Slide 12: Changes in net cash
Changes in net cash Cash conversion rate was 109%. (In HK$ million) 1H23 1H22 Net cash on January 1 948 875 Cash flow from operations 288 211 Dividends paid to NCI (9) (2) Dividends paid to shareholders (240) (158) Proceeds from issue of new shares 27 1 Exchange difference - (17) Net cash on June 30
Slide 13: Outlook
Outlook • Group sales growth will rely on pricing and marketing, assuming global inflation continues into mid-2024. • Offline retail gross margin will be maintained at the current level, but overall gross margin may be affected by channel mix. • Variable operating expenses will rise marginally due t
Slide 14: Group sales
Group sales (In HK$ million) 1H23 1H22 Mainland China 333 333 Hong Kong and Macau 316 303 Taiwan 226 218 Greater China 875 854 Indonesia 360 327 Thailand 139 108 Malaysia 94 102 Singapore 91 103 Vietnam 37 44 Australia 10 7 Cambodia 3 5 Southeast Asia and Australia 734 696 Gulf Cooperation Council 3
Slide 15: Store portfolio
Store portfolio Retail floor space (sq. ft. in thousands) Stores at June 30 at June 30 2023 2022 2023 2022 Taiwan 171 183 165 175 Mainland China 145 165 113 129 Hong Kong and Macau 39 44 51 58 Greater China 355 392 329 362 Indonesia 241 232 313 295 Thailand 154 153 110 109 Malaysia 86 87 84 82 Vietn
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