Stella International Holdings Limited · HKEX:1836
Stella International — FY2024 Earnings Presentation
25 slides from Stella International's earnings presentation, Mar 20, 2025
Slide 1: Annual Results 2024
Stella International Holdings Limited ~ TL SAE Ee A BR ZS a] Corporate Annual Results 2024
Slide 2: Disclaimer
DISCLAIMER This presentation and the accompanying slides (the “Presentation”) which have been prepared by Stella International Holdings Limited (“Stella” or the “Company”) do not constitute any offer or invitation to purchase or subscribe for any securities, and shall not form the basis for or be re
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS 3 2024 Annual Results
Slide 4: Group Overview: 2024 Highlights
GROUP OVERVIEW: 2024 HIGHLIGHTS Group Volume Gross Profit Operating Profit Margin Revenue Margin 11.9% +8.2% +120bps US$ 1,545m 24.9% +30bps Operating Profit +3.5% ASP -4.4% US$ 184.5m +15.7% Net Profit Adjusted Net Profit 1 Solid US$ 171.2m Net Cash Total Full-Year US$ 170.1m +16.0% US$ 417.6m Divi
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS FY 2023 FY 2024 Change (audited) (audited) Shipment Volume (m pairs) 49.0 53.0 8.2% ASP (US$) 29.7 28.4 -4.4% US$ m Revenue 1,492.7 1,545.1 3.5% Gross Profit 366.7 384.0 4.7% GP Margin 24.6% 24.9% +30bps Operating Profit 159.4 184.5 15.7% OP Margin 10.7% 11.9% +120bps Net Profit
Slide 6: Capex and Cash Flow Summary
CAPEX AND CASH FLOW SUMMARY FY 2023 FY 2024 Change US$ m (audited) (audited) Cash flows (used in)/ from operating 229.2 264.1 15.2% activities Profit before Tax 161.3 198.8 23.2% Depreciation 56.2 55.3 -1.6% Changes in working capital (35.5) 34.9 198.3% Other operating cash flows 47.2 (24.9) 152.8%
Slide 7: Strong Financial Position
STRONG FINANCIAL POSITION Solid net cash position $417.6m, within which $100m is reserved for an upcoming factory in Indonesia and $180m for Excess Cash Return Program for shareholders FY 2023 FY 2024 US$ m (audited) (audited) Cash and cash equivalents 294.5 423.5 Debt 7.1 5.9 Net Cash / (Debt) 287.
Slide 8: High Dividend Payout Ratio + 3-Yr Excess Cash Return Program (2024–2026)
HIGH DIVIDEND PAYOUT RATIO + 3-YR EXCESS CASH RETURN PROGRAM (2024 – 2026) Committed to return excess cash up to US$60 million per year for a three-year period (2024 – 2026) to shareholders, not exceeding US$180 million in total, through a combination of share repurchases and special dividends, on t
Slide 9: 2024 Full-Year Dividend
2024 FULL-YEAR DIVIDEND 2024 Final Dividend 2 2024 Interim Dividend 1 50 HK ¢ (Normal Dividend) 2024 Full-Year Dividend 56 HK ¢ (Excess Cash Return) 65 171 ＝ HK ¢ / share 106 HK ¢ / share HK ¢ / share Final dividend and special dividend will be paid on 6 June 2025 1Based on total no. of shares 8
Slide 10: Valuation & Dividend Yield
VALUATION & DIVIDEND YIELD Special dividend 56 cents + Regular Dividend 115cents = Full Year dividend per share 171 cents Net Profit US$’m Dividend HK cents Dividend Yield 170.1 Adopting customer 160 71% portfolio enhancement 12% strategy. Building luxury 11.8%140.3 56 Payout & fashion business Spec
Slide 11: Cost Structure
COST STRUCTURE BREAKDOWN FOR COSTS OF SALE (as % of Revenue) Direct Materials Direct Labour Manufacturing Overheads Depreciation Gross Profit 100.0% 24.6% 24.9% 80.0% 3.2% 3.0% 5.6% 5.8% 60.0% 9.8% 9.9% 40.0% 56.8% 56.4% 20.0% 0.0% 2023 2024 11 2024 Annual Results
Slide 12: Volume & ASP Trends
VOLUME & ASP TRENDS ASP SHIPMENT Adopting customer portfolio enhancement 80 strategy. Building luxury & fashion business 36 60.2 59.4 (US$/pair) 58.2 56.6 60 55.8 56.0 53.3 52.6 53.1 52.9 53.0 50.8 50.8 49.0 32 42.7 29.6 43.4 29.7 (m pairs) 29.3 40 28.6 28.3 28.5 28.4 28.1 27.1 27.1 28 26.7 25.8 25.
Slide 13: Operating Profit and Margin
OPERATING PROFIT AND MARGIN OPERATING PROFIT OPERATING PROFIT MARGIN Adopting customer portfolio enhancement 200 strategy. Building luxury 14.0% & fashion business 185 180 167 12.0% 157 159 160 10% 12% 137 136 135 US$ ’m 10.0% 140 11% 129 10% 11% 129 120 108 11% 9% 100 103 8.0% 100 88 8% 7% 8% 6.0%
Slide 14: Solid Net Cash Balance for Stella
SOLID NET CASH BALANCE FOR STELLA NET CASH / (DEBT) CASH AND CASH US$ m EQUIVALENTS 490 Adopting customer portfolio enhancement 418 407 strategy. Building luxury 390 360 & fashion business 424 407 355 360 317 355 287 290 317 264 252 249 294 264 206 252 249 190 213 132 127 127 106 132 79 75 135 90 14
Slide 15: Financial Comparison by 1H & 2H Seasonality
FINANCIAL COMPARISON BY 1H & 2H SEASONALITY 1H2024 2H2024 2024 Volume 50% 50% Revenue 50% 50% Net Profit 54% 46% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2H2023 2023 1H2023 Volume 48% 52% Revenue 48% 52% Net Profit 39% 61% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 15 2024 Annual Results
Slide 16: ROIC 2019 – 2024
ROIC 2019 – 2024 NOPAT +61% (2024 vs 2019) ROIC 10.8% 2024 vs 2019 INVESTED CAPITAL -20% 2024 vs 2019 NET PROFIT GROWTH • Improve customer mix with Luxury & High-end Fashion customers Adopting 25.0% customer portfolio • Grow with our largest Sports enhancement 21.6% Customer strategy. Building luxur
Slide 17: Business Review
BUSINESS REVIEW 17 2024 Annual Results
Slide 18: World's Leading Brand Customers
WORLD’S LEADING BRAND CUSTOMERS Our client base includes well-known global Sports, Luxury, Fashion and Casual brands LUXURY & FASHION SPORTS CASUAL 18 2024 Annual Results
Slide 19: Breakdown of Manufacturing Revenue by Product Categories
BREAKDOWN OF MANUFACTURING REVENUE BY PRODUCT CATEGORIES LUXURY & FASHION SPORTS CASUAL • Luxury and Fashion sales together increased by 2.8% • Increased volume • Reallocation of partially offset by capacity to other • Optimized capacity allocation ASP drop categories between Luxury & Fashion catego
Slide 20: Geographic Breakdown of Group Revenue
GEOGRAPHIC BREAKDOWN OF GROUP REVENUE Others PRC 1 Europe 2024: 3.1% 3.5% 2024: 16.9% 1.2% 2023: 3.4% 2024: 23.4% 2.5% 2023: 24.9% 2023: 17.3% N. America 2024: 47.4% 7.7% 2023: 45.6% 2024 Group Revenue: 2023: 8.8% US$ 1,545.1m 2023 Group Revenue: 1,492.7m US$ 1PRC including Hong Kong 2Asia excluding
Slide 21: Our Manufacturing Facilities
OUR MANUFACTURING FACILITIES GEOGRAPHIC MIX OF FOOTWEAR PRODUCTION 2 CHINA 3 2 23% 22% 24% 14 1 1 BANGLADESH PHILIPPINES 51% 51% 1 52% VIETNAM 26% 27% 24% 2023 2024 2025 2 (planned) INDONESIA China Vietnam Rest of Asia Footwear (Bangladesh, Indonesia & Handbags & Accessories Philippines) R&D Centre
Slide 22: Branding Business – Downsizing Retail Operations
BRANDING BUSINESS –DOWNSIZING RETAIL OPERATIONS Store operations in Europe already winded up Significantly scaled down retail operation in China – Closed 37 POS during 2024 – 25 POS as at end of Dec 2024 – Impairment related to closure of retail business in China was US$8.6m – Contribution to Gr
Slide 23: 2025 Outlook
2025 OUTLOOK 23 2024 Annual Results
Slide 24: 2025 Outlook – Focus
2025 OUTLOOK – FOCUS First two years (2023-2024) of 3-Year Plan already ahead of original targets. Confident to meet the dual targets under 3-Year Plan Optimise and reallocate our production capacity to 10% OPM meet solid demand from our diversified customer base 3-Year Plan Commence shipments t
Slide 25: Thank You
THANK YOU 25 2024 Annual Results
Stella International Holdings — FY2024 Earnings Presentation on 6ix