Bauhaus International (Holdings) Limited (stock code: 483) FY2008/09 Interim Results December 16, 2008

Transcription

1 Bauhaus International (Holdings) Limited (stock code: 483) FY2008/09 Interim Results December 16, 2008

2 Agenda Financial Highlights Business Review Future Development 2

3 Financial Highlights

4 Results Highlights For the 6 months ended 30/9/08 For the 6 months ended 30/9/07 Change (unaudited) (unaudited) Turnover (HK$ 000) 319, , % Gross profit (HK$ 000) 227, , % Gross margin (%) %pt EBITDA (HK$ 000) 40,271 32, % Net profit (HK$ 000) 24,372 23, % Net margin (%) %pt EPS (HK cents) % Interim DPS (HK cents) cents * Dividend payout ratio of not less than 30% 4

5 Turnover HK$ million CAGR: 20.74% Growth in turnover of about 25.9% in first 6 months of FY2008/ All business segments continue to grow satisfactorily, especially in the PRC, Macau and Taiwan months ended 30 September Transformation from a local retailer to a regional trendy fashion supplier 5

6 Net Profit HK$ million CAGR: 8.31% Net profit increased from HK$20.8 million in 2008 to HK$24.4 million this year Diversification strategy helps to counter pressure from consolidating market Net profit margin, however, dropped from 9.1% to 7.6% months ended 30 September Mainly due to higher rental costs, depreciation, and increased marketing and promotion efforts put into raising new in-house brands 6

7 Financial Indicators For the 6 months ended 30/9/08 For the 6 months ended 30/9/07 Change ROE (Annualised %) %pt ROA (Annualised %) %pt Inventory turnover (days) days Debtors turnover (days) day Capital expenditure (HK$ million) % As at 30/9/08 As at 31/3/08 Cash and cash equivalents (HK$ million) Gearing ratio Net Cash Net Cash Current ratio Quick ratio

8 Business Review

9 Mission Mission To dress up one s life with style To become a leading trendy fashion house and bring quality fashion to different parts of the world Financial Goals To maintain long term sustainable growth in both turnover and net profit To provide fair dividend return to shareholders and maintain stable dividend payout ratio of at least 30% of net profit 9

10 Corporate Strategies Three-Dimensional Growth Strategies Market Diversification Captured larger market share in massive general-trendy segment in addition to existing unique-stylish segment (in term of fashion style) Stepped in high-end fashion market (in term of pricing) Product Diversification Enhanced brand variety launched new in-house labels Increased product variety extensive range of fashionable items and accessories Geographical Diversification Expanding self-managed retail operation and franchise network to reach more prime cities in Mainland China Focused resource to develop wholesale distribution channels in the East Asia region Transformed from a local retailer to a regional trendy fashion supplier 10

11 Segmental Information Turnover (HK$ million) Market 4-9/08 4-9/07 Change (%) No. of outlets As at Market 30/9/08 As at 30/9/07 Change Self-managed retail outlets Self-managed retail outlets HK HK Macau Macau Taiwan Taiwan PRC PRC Franchise outlets Franchise outlets PRC & Macau PRC & Macau Wholesale Total Elsewhere Total

12 Turnover by Regions The PRC 15.3% Elsewhere 8.5% HK & Macau 64.8% The PRC 9.3% Elsewhere 8.9% HK & Macau 71.6% Taiwan 10.2% Taiwan 11.4% months ended 30 September 12

13 Retail Operation The PRC Penetrated in the country s domestic retail market through operation of self-managed retail outlets Shanghai the first prime city achieved satisfactory sales performance Established 4 news selfmanaged retail shops in Beijing As at 30 September outlets in Shanghai and 4 outlets in Beijing under brand names of: - TOUGH - SALAD 13

14 Retail Operation The PRC 14

15 Retail Operation Hong Kong Offered intensive trainings to sales staff Rolled out focused marketing campaigns Possessed retail network covering prime shopping malls and strategic areas As at 30 September outlets under brand names of: - BAUHAUS - TOUGH - SALAD - 80/20 - ELITE - ATTACHMENT 15

16 Retail Operation Hong Kong 16

17 Retail Operation Macau Commenced retail business since April 2007 Recorded a remarkable turnover growth of 326.5%, comparing to the corresponding period last year As at 30 September outlets under brand names of: - BAUHAUS - TOUGH - SALAD 17

18 Retail Operation Macau 18

19 Retail Operation Taiwan Supported by dedicated management efforts, welltrained sales teams and an extensive and solid retail network Sustained the position as a leading trendy fashion retailer in the area reporting above industry average sales As at 30 September outlets under brand names of: - TOUGH - SALAD - 80/20 19

20 Retail Operation Taiwan 20

21 Franchise Operation Continued as another growth driver of the Group and achieved an impressive growth of 40.2% for the review period Brand names TOUGH and SALAD emerged as acclaimed brands in the PRC region Assisted franchisees in expanding their operations and equipping them with retail management skills to deepen penetration of various cities and boost its retail network 21

22 Wholesale Operation Recorded a growth of 17.7% in turnover during the period under review Maintained stable sales performance in Japan Continued to enhance overseas distribution channels to secure stable and efficient sales Diversified customer base by extending reach to various countries e.g. SE Asia, the Middle East and Europe 22

23 Future Development

24 Outlook Network Expansion Extending presence in cities with high growth potential, particularly in the PRC and SE Asia In addition to Beijing and Shanghai, to extend selfmanaged retail shop network to Guangzhou, with shops opened in November and December 2008 Planning to open 5 more outlets in Taiwan in the second half of the fiscal year 24

25 Outlook Operational Strategies Strengthening brand image of core in-house labels such as TOUGH and SALAD Introducing innovative and inspiring brands and designs to satisfy different and changing consumer tastes Proactively exploring more retail and wholesale business ventures Streamlining distribution channels and operation to ensure sales effectiveness and cost efficiency 25

26 Outlook Cost Control Gradually improving operating cost structure by reducing fixed cost proportion Closely monitoring rental trend, reallocating certain shops strategically and re-negotiating with landlords for more reasonable rental arrangement Maintaining staff cost in line with sales growth Streamlining operational structure to further increase efficiency Consolidating advertising and promotional activities in the second half year and tightening control on renovation expenses 26

27 New Brands Presentation 27

28 New Brands Presentation 28

29 Fashion Trade Show 29

30 Q&A