Sunday, September 23 2018

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Bonjour achieved profit turnaround in 2018 1H Continues to optimise the store network and introduce new products

Update: August, 24/2018 - 16:18

Highlights

  •        Turnover reached HK$932.3 million, representing an increase of 1.7% as compared with last year
  •        Profit attributable to owners amounted to HK$7.4 million and successfully achieved profit turnaround
  •        Retail sales continued to rebound in first half of 2018 and the same store sales growth for Hong Kong & Macau recorded a continuous improvement, reaching 14.9%
  •        Actively installs various electronic payment readers to embrace the fast-developing e-payment innovations
  •        Continues to optimise the store network and introduce new products
  •        Plans to expand into the beauty and lifestyle market in the PRC

 

Financial Highlights

 

Six months ended 30 June

 

HK$'000

2018

2017

Change

Turnover

932,332

916,810

+1.7%

Gross profit

340,005

335,456

+1.3%

Profit (Loss) from operations

15,178

-50,292

-

Profit (Loss) attributable to owners

7,418

-57,750

-

Basic earnings (loss) per shares
(
HK cents)

0.2

-1.7

-

 

 








HONG KONG, CHINA - Media OutReach - 24 August 2018 - The board of directors of Bonjour Holdings Limited (HKEx stock code: 653, "Bonjour" or the "Group") announced its interim results. For the six months ended 30 June 2018 (the "Period" or "review period"), the Group recorded a total turnover of approximately HK$932.3 million (2017: approximately HK$916.8 million), representing an increase of 1.7% from the last corresponding period. Profit from operations for the Period amounted to approximately HK$15.2 million (2017: loss of approximately HK$50.3 million).

 

The Group successfully achieved profit turnaround in the review period, with profit attributable to owners of the Company amounted to approximately HK$7.4 million (2017: loss of approximately HK$57.8 million). This was mainly due to (1) retail sales continued to rebound in first half of 2018 and the same store sales growth recorded a continuous improvement; and (2) significant drop in shop rental expenses because of the more reasonable monthly rents agreed upon renewal or new contracts, particularly for street-level stores. The Board has resolved not to declare any interim dividend (2017: nil).

 

Business Review

Retail Sales

The retail industry is on course for a continuous upturn in Hong Kong due to both the improvement in inbound tourism and improved consumer sentiment. The Group's turnover grew by 1.7% while same-store sales rose 14.9%. The Group has kept an eye on the latest trends to accelerate sales performance by selecting the trendiest products from across the world and timely adjusting the product portfolio to optimize product offerings and enhancing customers' shopping experience in the fast-changing markets. At the same time, the Group has organized different promotional activities and offered discounts during different festivals to attract new customers, and as a token of appreciation to the reward existing customers for their continuous support.

 

E-Commerce

The Group has installed various electronic payment equipment in its stores -- to support Apple Pay, Google Pay (previously Android Pay), Alipay HK and WeChat Pay -- further facilitating diversified customer payment habits. During the Period, the Group has introduced various joint activities with Alipay HK and WeChat Pay -- such as the launch of "Boujour Welcome Reward" with Alipay HK and the reward of electronic coupon for users of WeChat Pay at Bonjour -- to improve customers' shopping experience, to boost repeat purchase and to build brand awareness.

 

The Group has also actively strengthened its e-commerce sales channels by launching promotions across a variety of channels, including the Group's official shopping website, its long-established shopping platforms at Tmall and WeChat. Moreover, the Group has made use of different social media -- such as Facebook, Instagram, WeChat and Weibo -- to allow customers to track its latest updates and promotions, while enhancing brand awareness. During the Period, the Group's online sales amounted to HK$24.6 million (2017: HK$17.9 million), rose by 37.6%.

 

Rental and Store Network

The Group has continued to seize opportunities by closely monitoring market changes, analysing rental trends in various districts in order to extend the store network to different communities, and carefully expanding its business. Benefitting from the significant drop in shop rental expenses mainly due to more reasonable monthly rents agreed upon renewal or new contracts, particularly for street-level stores, the Group significantly improved cost efficiency. The retail store rent-to-turnover ratio amounted to 15.5% (2017: 20.4%).

 

Brand Management

With years of extensive industry experience and an effective brand strategy, the Group understands the market needs and wants. The Group has sought products from internationally renowned brands according to market needs, enriching the product portfolio and providing diversified and high quality products. Currently, the Group is the distributor of 20,000 well-known global cosmetics, skincare and healthcare products.

 

The Group has also focused on the marketing of various brands and appointed celebrities as brand ambassadors to enhance the overall brand awareness of the Group. During the Period, the marketing expenditure for the Group amounted to HK$8.6 million (2017: HK$6.2 million).

 

Outlook

This year has seen sustained retail sales growth and the outlook for the retail market remained positive. The Group will also continue to optimise the store network, search for new products to meet the needs and preferences of customers and further enhance the quality of staff and service. We will continue to formulate pragmatic development strategies, seize market opportunities, and find suitable merger and acquisition opportunities.

 

In addition, the Group has been mindful of grasping opportunities to expand into the PRC market and appointed Mr. Fan Ka Fai Andrew as the co-chairman and the Chief Dream Officer of a newly formed wholly-owned subsidiary which will focus to venture into the beauty and lifestyle market in the PRC.

  

About Bonjour Holdings Limited (SEHK: 0653)

Bonjour Holdings Limited was established in 1991 and is now running 36 physical retail chain stores in Hong Kong, Macau and Guangzhou, as well as an official online shopping mall (www.bonjourhk.com), selling over 20,000 beauty and healthcare products, including about 110 active exclusively-distributed international brands and house-brand products. The products include skincare, fragrances, make-up, healthcare, hair & personal care, pharmaceutical and other lifestyle products. The Group provides a full range of high quality beauty and healthcare services.



Bonjour Holdings Limited

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