Convenience Retail Asia Limited · HKEX:831
Convenience Retail Asia — Q1 2010 Earnings Presentation
24 slides from Convenience Retail Asia's earnings presentation, May 10, 2010
Slide 1: Convenience Retail Asia Limited 2010Q1 Results Announcement
Convenience Retail Asia Limited 2010Q1 Results Announcement 10 May 2010
Slide 2: Agenda
Agenda Overall Hong Kong & Guangzhou Retail Markets 2010Q1 Key Highlight 2010Q1 Financial Results Highlight 2010 Update & Outlook
Slide 3: Hong Kong & Guangzhou Retail Markets
Hong Kong & Guangzhou Retail Markets
Slide 4: Hong Kong Retail Market
Hong Kong Retail Market HK Retail Sales Value HK Consumer Price Index March YTD: 18.8% March YTD: 1.9% 45 6 40 35.8 5 Year-on-year % change Year-on-year % change 35 4.3 30 4 25 2.8 19.0 3 20 2.0 2.0 15 12.8 2 10.6 10 6.5 1.0 1 0.5 5 0.6 0 0 201001 201002 201003 2007FY 2008FY 2009FY 2007FY 2008FY 200
Slide 5: Hong Kong Retail Market
Hong Kong Retail Market March YTD 2010 March YTD 2010 Retail Value Retail Volume (vs. March YTD 2009 % Change) All Retail Outlets +18.8% +15.8% Motor Vehicles and Parts +53.7% +52.8% Other Consumer Durable +37.8% +43.7% Goods Jewellery, Watches & Clocks, +37.1% +25.3% and Valuable Gifts Electrical G
Slide 6: Guangzhou Retail Market
Guangzhou Retail Market GZ Retail Sales Value GZ City Consumer Price Index March YTD: 15.3% March YTD: 1.7% 35 8 5.9 30 6 Year-on-year % change Year-on-year % change 25 22.4 3.9 21.0 4 3.4 18.9 18.8 2.2 20 16.2 2 14.9 15 0 10 -0.9 -2 5 -2.5 0 -4 2007FY 2008FY 2009FY 201001 201002 201003 2007FY 2008F
Slide 7: 2010Q1 Key Highlight
2010Q1 Key Highlight
Slide 8: Key Highlight: Hong Kong Market
2010Q1 Key Highlight Hong Kong Market Overall market for daily necessities and food remained stagnant CVS sales still impacted by the plastic bag levy Keen competition in cake and bakery business due to the emergence of local bakery shops and steam buns outlets Increase in comparable store s
Slide 9: Aggressive Promotions in 2009Q1
Aggressive Promotions in 2009Q1
Slide 10: Key Highlight: Circle K Hong Kong
2010Q1 Key Highlight Circle K Hong Kong 1st Runner-up and 2nd Runner-up of Best Brewed Coffee (HK Style)
Slide 11: Key Highlight: Southern China Market
2010Q1 Key Highlight Southern China Market Store traffic and comparable store sales were adversely affected by loss of cigarette sales Effective January 2010, started to pay VAT for all Hot & In food services products Comparable store sales narrowed to -0.6% Franchise stores all showing impr
Slide 12: 2010Q1 Financial Results Highlight
2010Q1 Financial Results Highlight
Slide 13: Number of Stores
2010Q1 Financial Results Highlight Number of Stores End of End of Opened Closed 2009 2010Q1 Circle K Hong Kong 299 6 (2) 303 Circle K Southern China 62 2 (6) 58 - Guangzhou (owned) 57 2 (5) 54 - Guangzhou (franchised) 4 0 (1) 3 - Shenzhen 1 0 0 1 Circle K Macau (J.V.) 19 2 0 21 Circle K Zhuhai (J.V.
Slide 14: Group Turnover
2010Q1 Financial Results Highlight Group Turnover 4,000 3,322.7 3,349.3 1.7% 3,000 HK$ Million 2,000 801.5* 814.8* 1,000 165.5 170.2 647.9 659.2 0 2008FY 2009FY 2009Q1 2010Q1 Circle K Saint Honore * Less inter-group sales: HK$11.9M in 2009Q1 and HK$14.6M in 2010Q1
Slide 15: Gross Margin / Other Income
2010Q1 Financial Results Highlight Gross Margin / Other Income 40% 0.7% 38% 37.1% 36.8% 36.4% % of Turnover 35.7% 36% 34% 32% 30% 2008FY 2009FY 2009Q1 2010Q1 * Excluding interest income
Slide 16: Store Operating Expenses
2010Q1 Financial Results Highlight Store Operating Expenses 40% 0.9% 30% 26.9% 26.9% 27.3% 26.4% % of Turnover 20% 10% 0% 2008FY 2009FY 2009Q1 2010Q1
Slide 17: Group Net Profit
2010Q1 Financial Results Highlight Group Net Profit 120 14% 120 143.3% 100 88.9 90.4 100 88.9 90.4 80 80 HK$ Million HK$ Million 60 60 40 40 33.8 13.9 15.8 13.9 20 20 0 0 2008FY 2009FY 2009Q1 2010Q1 2008FY 2009FY 2009Q1 2010Q1 * Net profit from business operations * 2010Q1 net profit including $18M
Slide 18: Net Profit By Market
2010Q1 Financial Results Highlight Net Profit By Market (HK$’000) 2009Q1 2010Q1 Change Hong Kong & Macau 23,161 40,750 +75.9% Markets China Market (9,260) (6,926) +25.2% CRA Group Total 13,901 33,824 +143.3%
Slide 19: Net Profit as % of Turnover
2010Q1 Financial Results Highlight Net Profit as % of Turnover 6% 2.5% 5% 4.2% % of Turnover 4% 2.7% 2.7% 3% 1.7% 2% 1% 0% 2008FY 2009FY 2009Q1 2010Q1
Slide 20: Basic Earning Per Share
2010Q1 Financial Results Highlight Basic Earning Per Share 16 14 12.39 143.7% 12.18 12 10 HK Cents 8 6 4.63 4 1.90 2 0 2008FY 2009FY 2009Q1 2010Q1
Slide 21: 2010Q1 Financial Results Highlight
2010Q1 Financial Results Highlight 2009Q1 2010Q1 Change Number of Stores 500 495 -1.0% Group Turnover (HK$M) 801.5 814.8 +1.7% Group Net Profit (HK$M) 13.9 33.8 +143.3% Net Profit as % of Turnover 1.7% 4.2% 2.5% Basic Earnings Per Share 1.90 cents 4.63 cents +143.7%
Slide 22: 2010 Update and Outlook
2010 Update and Outlook
Slide 23: 2010 Update & Outlook
2010 Update & Outlook Demand volume expected to be constant and sales value increase mainly due to inflation factor Intense competition limiting increase in prices and gross margin Raw material cost, labour and rental expenses all showing signs of increase Circle K Hong Kong and Saint Honore
Slide 24: To Summarize
To Summarize 2010Q1 retail volume almost unchanged Aggressive restructuring in Southern China, creative promotions in Hong Kong as well as tight control of expenses led to satisfactory improvement in sales and profitability for 2010Q1 Similar trends for April and May Outlook for June to Dece
Convenience Retail Asia — Q1 2010 Earnings Presentation on 6ix