Viva Goods Announces Interim Results of 2024

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Viva Goods Company Limited

（Stock code：0933.HK）

Viva Goods Announces Interim Results of 2024

(Hong Kong - 23 August 2024) Viva Goods Company Limited ("Viva Goods" or the "Company") and its subsidiaries (the "Group") (stock code: 933.HK), announces its interim results for the six months ended 30 June 2024 (the "Period"). During the Period, the markets where the Group's brands mainly operate continued to be impacted by inflation and interest rate hikes, which led to an increasing cost of living, which has suppressed consumer sentiment in the markets. The weakening of the domestic demand results in an increasingly challenging operating environment for the retail industry. Despite the uncertain market outlook, the Group maintained its pragmatic and prudent strategy through strengthening cost control and enhancing operational efficiency, while maintaining net cash position and seizing investment opportunities to expand its brand matrix. During the Period, the profit attributable to equity holders dropped by 14.5% to HK$112.8 million. But after excluding those items that the Company believe are not reflective of our core operating performance, the Group recorded an adjusted EBITDA of HK$536.9 million, representing a year-on-year increase of 8.6%.

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Prudent Development of Multi-brand Consumer Goods Business

Clarks, a British footwear brand, is one of the Group's most important sources of income, where it contributed 85.9% of the Group's overall revenue during the period. As a result of high inflation and high interest rates in key markets, Clarks' revenue during the Period reduced by 6.2% year-on-year. In order to cope with the uncertainties of the market environment and to improve operational efficiency, the brand continued its restructuring programme and continued to control costs. During the Period, the Group focused on optimizing Clarks' product mix in different regions and expanding wholesale business in Europe and the United States, with a view to maintaining the brand's market share. At the same time, the Group also accelerated its inventory turnover to facilitate cash flow. In the Greater China market, the Group re-examined and optimized its existing direct sales channels, focusing on improving shop efficiency. Meanwhile, the Group continued to implement its 'China for China' strategy, focusing on developing and designing products for the Chinese consumer, with a view to increasing Clarks' influence in the Greater China market.

The new sports and leisure brand, bossini.X, has accelerated its product development and market deployment. By sponsoring the National Cycling Team, bossini.X has injected cycling elements into the brand's DNA and launched designs that incorporate cycling culture. At the same time, bossini.X has also cooperated with the Hong Kong University of Science and Technology to create professional cycling outfits for the cycling athletes. During the Period, bossini.X also signed a three-year sponsorship agreement with the Hong Kong cycling team, becoming the team's sole apparel sponsor to support Hong Kong's cycling athletes in their quest for excellence at the Paris Olympics and beyond. In the future, the Group plans to cooperate with the cycling clubs and sports enthusiasts to promote cycling culture and strengthen ties with its target customers, while focusing on the research and development of technological fabrics and high-performance products.

The Group has always maintained a keen business sense and is always on the lookout for suitable investment opportunities. During the Period, the Group announced the formation of a joint venture with LionRock Capital Aspire (HK) Limited to jointly operate Haglöfs, a renowned Nordic outdoor equipment and apparel brand, in Greater China, which will further expand the Group's consumer brand portfolio to meet the needs of different consumer segments.

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Benefiting from the "Year of Sports" to Develop Sports Experience Business

During the Period, the Group's sports experience business grew steadily. The Group currently operates 11 sports parks and 14 ice skating rinks. 2024 is the "Year of Sports" with large-scale sports events such as the Paris Olympics and the European Cup. The strong sports atmosphere is expected to provide development momentum for this business segment.

Prospects

Looking ahead, the Group will remain cautiously optimistic and adapt to the circumstances, paying close attention to global economic and market dynamics, as well as flexibly adjusting its strategies to meet challenges and opportunities. In the face of uncertainties in the macro environment, the Group will control costs reasonably, safeguard cash flow and develop its consumer brands in a prudent and orderly manner. In order to meet the increasingly diversified market demands, the Group will persistently pursue excellence, striving to bring more quality brands to the public to serve the elegant, enjoyable, healthy and leisurely lifestyles, and to contribute to people's well-being.

- END -

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About Viva Goods Company Limited

Viva goods is a Hong Kong Main Board listed company, also a Constituent of Hang Seng Composite Index and the Hong Kong Stock Connect, committed to becoming a leading international brand operator. It has a portfolio of renowned international apparel and footwear brands, including Clarks, a British footwear brand with nearly two hundred years of history, Bossini and bossini.X, the famous casual wear brands, LNG, the affordable luxury fashion brand, and TESTONI, a century-old Italian luxury leatherwear brand. The Group's business covers markets such as Europe, the United States, Greater China, Japan, South Korea, Southeast Asia, etc. Apart from the multi-brand apparel and footwear business, the Group also developed its sports experience business, which includes operating and managing a total of 11 sports parks and 14 ice skating rinks across China.

This press release is issued by DLK Advisory Limited on behalf of Viva Goods Company Limited. For enquiries, please contact,

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