Convenience Retail Asia Limited · HKEX:831
Convenience Retail Asia — H1 2024 Earnings Presentation
23 slides from Convenience Retail Asia's earnings presentation, August 2024
Slide 1: Convenience Retail Asia Limited 2024 Interim Results Presentation
Convenience Retail Asia Limited 利亞零售有限公司 (Stock Code: 831.HK) 2024 Interim Results Presentation August 2024 2024 Interim Results
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 Highlights • Business Highlights o Bakery Segment o Eyewear Segment • Financial Highlights • Q&A 2024 Interim Results 3
Slide 4: Hong Kong Retail Market Key Highlights
Hong Kong Retail Market Key Highlights 2024 Interim Results 4
Slide 5: 2023/24 Hong Kong Retail Market
2023/24 Hong Kong Retail Market Total Retail Sales (HKD'm) 40,000 36,176 36,518 35,000 33,115 33,759 31,759 31,167 30,571 29,869 29,570 30,000 25,000 20,000 15,000 10,000 5,000 0 Apr-23 Apr-24 Oct-23 Jan-23 Mar-23 Mar-24 Jun-23 Jan-24 Jul-23 Jun-24 Aug-23 Sep-23 Feb-23 May-23 Dec-23 May-24 Nov-23 Fe
Slide 6: 2023/24 Hong Kong Retail Market
2023/24 Hong Kong Retail Market Total Bread, pastry, confectionery (HKD'm) Total optical shops (HKD'm) 1,600 Mooncake 350 314 1,343 1,400 300 270 269 253 256 1,200 CNY 242 242 242 986 250 226 225 227 219 209 1,000 CNY 923 192 194 749 744 778 797 200 171 177 178 800 676 729 682 702 643 721 672 572 59
Slide 7: Inbound & Outbound figures
Inbound & Outbound figures Hong Kong Residents arrivals vs departures 800,000 Easter weekend & Ching Ming HKSAR day 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 Arrival Departure Source: https://www.immd.gov.hk/eng/facts/passenger-statistics-menu.html 2024 Interim Results 7
Slide 8: MTR Patronage Figures
MTR Patronage Figures MTR Patronage Figures 160,000 2024 Jun YTD 150,000 2024 vs. 2023: +1% 140,000 2024 vs. 2022: +38% 2024 vs. 2021: +22% 130,000 2024 vs. 2020: +42% 120,000 2024 vs. 2019: -5% 110,000 2024 vs. 2018: -4% 100,000 90,000 80,000 70,000 60,000 Jan Feb Mar Apr May June July Aug Sep Oct
Slide 9: 2024 Business update
2024 Business update 2024 Interim Results 10
Slide 10: Bakery Segment
Bakery Segment • Weekday sales are improving while weekend and public holidays remain challenging • Cake sales across most operators have dropped reflecting major structural change • Customer engagement via Cake Easy to generate new members and retain market share • Growing demand from B2B customers
Slide 11: Bakery Network Expansion
Bakery Network Expansion ◼ Pier 3, Central (Mar-24) ◼ Tung Chung 2 (July-24) ◼ The Southside (Jun-24) 2024 Interim Results 12
Slide 12: Online Branding and Marketing Campaigns
Online Branding and Marketing Campaigns 2024 Interim Results 13
Slide 13: New Product Development – Saint Honore
New Product Development – Saint Honore 2024 Interim Results 14
Slide 14: New Product Development – Mon cher
New Product Development – Mon cher 2024 Interim Results 15
Slide 15: 2024 Key Initiatives
2024 Key Initiatives Bakery 1 Protect market share in core categories with attractive offerings (“wow Fridays”) 2 Expand product offering to increase basket size and give consumers a reason to trade up 3 Continue to expand into new categories such as chilled items 4 New store concept design under de
Slide 16: Eyewear segment
Eyewear segment • Shops in New Territories are more impacted by Shenzhen competitors • GBA pricing is disruptive to local market • Weaker Yen and strong dollar has also caused consumers to buy Zoff in Japan instead of Hong Kong • Brand marketing campaign to be launched in 2H24 • Source differentiate
Slide 17: Eyewear Network Expansion (Hong Kong)
Eyewear Network Expansion (Hong Kong) ◼ Sheung Shui Centre (Jan-24) ◼ The Southside (Jun-24) 2024 Interim Results 18
Slide 18: New Product Launches
New Product Launches ZOFF COLLECTIONS CHARACTER / DISNEY 2024 Interim Results 19
Slide 19: 2024 Financial Results Highlights
2024 Financial Results Highlights 2024 Interim Results 20
Slide 20: Interim Results 2024
Interim Results 2024 Reported revenue: Gross profit %: Core operating profit: Basic earnings per share: $721.7m 53.7% $17.4m HK1.6 cents (1H23: HK 2.0 cents) (1H23: $701.8m) (1H23: 52.1%) (1H23: $21.6m) +2.8% -19.4% Bakery Turnover: Eyewear Turnover: Net profit after tax: Interim dividend per share:
Slide 21: Prudent store network expansion
Prudent store network expansion 31 Dec 23 30 Jun 24 Net change Bakery segment 161 154 (7) • Saint Honore – HK&MC 134 130 (4) • Saint Honore – Mainland China 21 18 (3) • Patisserie Mon cher 6 6 - Eyewear segment 15 21 6 • Zoff – Hong Kong 15 16 1 • Zoff – Singapore - 5 5 CRA Group 176 175 (1) 2024 In
Slide 22: Resilient despite adverse market conditions
Resilient despite adverse market conditions 2024 Interim Results 23
Slide 23: Q&A
Cony Q&A 2024 Interim Results 24
Convenience Retail Asia — H1 2024 Earnings Presentation on 6ix