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

August, 24/2018 - 16:18
Bonjour achieved profit turnaround in 2018 1H Continues to optimise the store network and introduce new products

Highlights

  •        Turnoverreached HK$932.3 million, representing an increase of 1.7% as compared withlast year
  •        Profit attributable to owners amounted to HK$7.4million and successfully achieved profit turnaround
  •        Retailsales continued to rebound in first half of 2018 and the same store salesgrowth for Hong Kong & Macau recorded a continuous improvement, reaching14.9%
  •        Actively installs various electronic payment readersto embrace the fast-developing e-payment innovations
  •        Continuesto optimise the store network and introduce new products
  •        Plansto 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

-

 

 








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

 

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

 

Business Review

Retail Sales

The retailindustry is on course for a continuous upturn in Hong Kong due to both theimprovement in inbound tourism and improved consumer sentiment. The Group's turnover grew by 1.7% whilesame-store sales rose 14.9%. The Group has kept an eye on the latest trends toaccelerate sales performanceby selecting the trendiest products from across the world and timelyadjusting the product portfolio to optimize product offerings and enhancingcustomers' shopping experience in the fast-changing markets. At the same time,the Group has organized different promotional activities and offered discountsduring different festivals to attract new customers, and as a token ofappreciation to the reward existing customers for their continuous support.

 

E-Commerce

The Group has installed various electronic paymentequipment in its stores -- to support Apple Pay, Google Pay (previously AndroidPay), Alipay HK and WeChat Pay -- further facilitating diversified customer paymenthabits. During the Period, the Group has introduced various joint activitieswith Alipay HK and WeChat Pay -- such as the launch of "Boujour WelcomeReward" with Alipay HK and the reward of electronic coupon for users ofWeChat Pay at Bonjour -- to improve customers' shopping experience, to boostrepeat purchase and to build brand awareness.

 

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

 

Rental and Store Network

The Group has continued to seize opportunities byclosely monitoring market changes, analysing rental trends in various districtsin order to extend the store network to different communities, and carefullyexpanding its business. Benefitting from the significant drop in shop rentalexpenses mainly due to more reasonable monthly rents agreed upon renewal or newcontracts, particularly for street-level stores, the Group significantlyimproved cost efficiency. The retail store rent-to-turnover ratio amounted to 15.5%(2017: 20.4%).

 

BrandManagement

With years ofextensive industry experience and an effective brand strategy, the Groupunderstands the market needs and wants. The Group has sought products frominternationally renowned brands according to market needs, enriching theproduct 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 hasalso focused on the marketing of various brands and appointed celebrities asbrand ambassadors to enhance the overall brand awareness of the Group. Duringthe Period, the marketing expenditure for the Group amounted to HK$8.6 million(2017: HK$6.2 million).

 

Outlook

This year hasseen sustained retail sales growth and the outlook for the retail marketremained positive. The Group will also continue to optimise the store network,search for new products to meet the needs and preferences of customers andfurther enhance the quality of staff and service. We will continue to formulatepragmatic development strategies, seize market opportunities, and find suitablemerger and acquisition opportunities.

 

In addition, theGroup has been mindful of graspingopportunities to expand into the PRC market and appointed Mr. Fan KaFai Andrew as the co-chairman and the Chief Dream Officer of a newly formedwholly-owned subsidiary which will focus to venture into the beauty and lifestyle market inthe PRC.

  

About Bonjour Holdings Limited (SEHK: 0653)

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


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