Convenience Retail Asia Limited · HKEX:831
Convenience Retail Asia — H1 2023 Earnings Presentation
27 slides from Convenience Retail Asia's earnings presentation, Aug 10, 2023
Slide 1: 2023 Half-Year Results Presentation
2023 Half-Year Results Presentation 10 August 2023 2023 Half-Year 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 • 1H2023 Business Highlights • 1H2023 Financial Results Highlights • 2H2023 Key Initiatives • Q&A 2023 Half-Year Results 3
Slide 4: Hong Kong Retail Market Key Highlights
Hong Kong Retail Market Key Highlights 2023 Half-Year Results 4
Slide 5: 1H2023 Hong Kong Retail Market
1H2023 Hong Kong Retail Market • Overall retail sales for 1H23 vs 1H22 increased by 20.7%. Total Retail Sales (HKD'm) 40,000 36,176 33,122 • Since full resumption of travel in February 2023, Hong 35,000 33,835 30,000 Kong residents have been active travelling, especially 25,000 during long weekends.
Slide 6: 1H2023 Hong Kong Retail Market
1H2023 Hong Kong Retail Market Total Bread, pastry, confectionery (HKD'm) Total optical shops (HKD'm) 1,200 350 314 1,054 986 300 1,000 250 800 675 200 169 600 150 400 100 200 50 0 0 Feb-22 Mar-22 Apr-22 Sep-22 Feb-22 Mar-22 Apr-22 Sep-22 Jan-22 Jul-22 Feb-23 Mar-23 Apr-23 Jan-22 Jul-22 Feb-23 Mar-2
Slide 7: Recent Consumer Behaviour
100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 0 50,000 1/1/2023 8/1/2023 15/1/2023 22/1/2023 29/1/2023 2023 Half-Year Results 5/2/2023 12/2/2023 19/2/2023 26/2/2023 5/3/2023 12/3/2023 Source: https://www.immd.gov.hk/eng/facts/passenger-statistics-menu.html Recent Consumer Behaviour
Slide 8: MTR Patronage Figures
MTR Patronage Figures 2023 June YTD 2023 vs. 2022: +36% 2023 vs. 2021: +20% 2023 vs. 2020: +40% MTR Patronage Figures (000’s) 2023 vs. 2019: -6% 160,000 2023 vs. 2018: -5% 150,000 140,000 130,000 120,000 110,000 100,000 90,000 80,000 70,000 60,000 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec So
Slide 9: 1H2023 Business Highlights
1H2023 Business Highlights 2023 Half-Year Results 9
Slide 10: Bakery Retail and B2B
Bakery Retail and B2B • Retail demand was soft in Q1 and slowly picked up in Q2 after Easter break • B2B vertical strengthening with new accounts and wider SKU mix • Over 1.25 million CakeEasy members across Hong Kong and Macau • Guangzhou flagship store’s performance improved after re-fit • Mon che
Slide 11: Eyewear Retail
Eyewear Retail • Brand awareness continues to be strong resulting in positive comparable store sales growth • Focused marketing campaign via social media supported by Zoff Japan • First fast fashion eyewear retailer to launch MiYOSMART* targeted for children • Actively pursuing new locations in righ
Slide 12: Continuing to Expand Store Network
Continuing to Expand Store Network New store at Choi Ming Centre, TKO New store at Heung Sze Wai New store at Ho Shun Fook Building, Opened on 4 January 2023 Square, Tai Po Yuen Long Opened on 1 February 2023 Opened on 9 March 2023 2023 Half-Year Results 12
Slide 13: Refit of Foshan Aeon Mall (April 2023)
Refit of Foshan Aeon Mall (April 2023) 2023 Half-Year Results 13
Slide 14: CakeEasy has over 1.25 million members
CakeEasy has over 1.25 million members 2023 Half-Year Results 14
Slide 15: New Product Development
New Product Development 2023 Half-Year Results 15
Slide 16: New Product Development
New Product Development 2023 Half-Year Results 16
Slide 17: New Product Development
New Product Development ZOFF COLLECTIONS CHARACTER / DISNEY FASHION 2023 Half-Year Results 17
Slide 18: 1H2023 Financial Results Highlights
1H2023 Financial Results Highlights 2023 Half-Year Results 18
Slide 19: Interim Results 2023
Interim Results 2023 Reported revenue: Gross profit %: Core operating profit: Basic earnings per share: $702m 52.1% $21.6m $2 cents (1H22: $674m) (1H22: 48.6%) (1H22: $22.4m) (1H22: $2.2 cents) +4.1% -3.5% Bakery Turnover: Eyewear Turnover: Net profit after tax: Interim dividend per share: $629m $73
Slide 20: Number of Stores
Number of Stores 30 Jun 2022 31 Dec 2022 Opened Closed 30 Jun 2023 Bakery segment 151 160 3 (4) 159 Saint Honore – Hong Kong 107 115 3 (2) 116 Saint Honore – Macau 12 12 - - 12 Saint Honore – China 26 26 - (2) 24 Patisserie Mon cher 6 7 - - 7 Eyewear segment – Zoff 13 14 - - 14 CRA Group 164
Slide 21: Revenue and Net Profit
Revenue and Net Profit 1H Revenue (HKD'm) 1H Net profit (HKD'm) 800 20 674 702 16.7 66 73 15.2 600 15 400 10 608 629 200 5 0 0 1H22 1H23 1H22 1H23 Bakery group Eyewear 2023 Half-Year Results 21
Slide 22: Operating Margin
Operating Margin Gross profit - as % of revenue Store expenses - as % of revenue 60% 40% 52.1% 35.8% 48.6% 31.5% 50% 30% 40% 30% 20% 20% 10% 10% 0% 0% 1H22 1H23 1H22 1H23 2023 Half-Year Results 22
Slide 23: 2H2023 Key Initiatives
2H2023 Key Initiatives 2023 Half-Year Results 23
Slide 24: 2H2023 Key Initiatives
2H2023 Key Initiatives Bakery 1 Protect market share in core categories with tactical promotion and new product development 2 Broaden product offering in cakes segment and marketing activities to capture market share 3 Improve GP margin using new equipment and review alternative raw materials 4 Stor
Slide 25: 2H2023 Key Initiatives
2H2023 Key Initiatives Eyewear 1 Store network expansion to new catchment areas 2 Marketing campaign to promote MiYOSMART 3 Increase marketing efforts to target new customers and inbound tourists from China 4 Penetrate network via collaboration with MNCs or local corporates 5 Formulate overseas expa
Slide 26: Q&A
Q&A 2023 Half-Year Results 26
Slide 27: Thank You
Thank You 2023 Half-Year Results 27
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