Proposed a remaining dividend of HK6.0 cents per share
Highlights:
- Income recorded roughly HK$1,930.8 million.
- Gross revenue recorded roughly HK$694.3 million.
- Working revenue recorded roughly HK$213.6 million.
- Revenue attributable to house owners of the Firm recorded roughly HK$168.3 million.
- As at 31 December 2023, the Group operated a complete of 167 chain retail shops, together with 159 retail shops in Hong Kong, 7 retail shops in Macau and 1 retail retailer in Mainland China.
- Fundamental earnings per share was roughly HK16.8 cents. The Board advisable the fee of ultimate dividend of HK6.0 cents per share.
Monetary Highlights:
HK$’000 | Nine months ended 31 Dec 2023 |
Yr ended 31 Mar 2023 |
Income | 1,930,831 | 2,305,907 |
Gross revenue | 694,258 | 817,263 |
Gross revenue margin | 36.0% | 35.4% |
Working revenue | 213,644 | 248,921 |
Revenue attributable to house owners of the Firm | 168,335 | 200,997 |
Fundamental earnings per share (HK cents) | 16.8 | 20.1 |
HONG KONG SAR – Media OutReach Newswire – 24 March 2024 – Finest Mart 360 Holdings Restricted (“Finest Mart 360” or the “Firm”, along with its subsidiaries, the “Group”; inventory code: 2360.HK), a leisure meals retailer in Hong Kong, introduced its outcomes for the 9 months ended 31 December 2023 (“the Monetary Interval below Evaluation”). Because the Firm modifications the monetary 12 months finish date from 31 March to 31 December, which is totally different from the size of the earlier reporting interval, the audited comparative figures is probably not totally comparable.
Through the Monetary Interval below Evaluation, the income recorded by the Group amounted to roughly HK$1,930,831,000, representing a period-on-period enhance of roughly 17.3% as in contrast with the unaudited income of similar nine-month interval in 2022. Through the Monetary Interval below Evaluation, the Group recorded an roughly 3.4% progress in similar retailer gross sales efficiency (for the 12 months ended 31 March 2023: roughly 2.5% progress).
Through the Monetary Interval below Evaluation, gross revenue was roughly HK$694,258,000, in contrast with the gross revenue of roughly HK$817,263,000 for the 12 months ended 31 March 2023. The Group’s gross revenue margin for the 9 months ended 31 December 2023 was roughly 36.0%, representing a rise of 0.6 proportion factors in contrast with 35.4% for the 12 months ended 31 March 2023.
Revenue attributable to house owners of the Firm was roughly HK$168,335,000 (for the 12 months ended 31 March 2023: roughly HK$200,997,000). The Group’s web revenue margin was roughly 8.7% for each the 9 months ended 31 December 2023 and the 12 months ended 31 March 2023.
Through the Monetary Interval below Evaluation, fundamental earnings per share was roughly HK16.8 cents (for the 12 months ended 31 March 2023: HK20.1 cents).
BUSINESS REVIEW
19 new retail shops & enhance footprint in residential areas
As at 31 December 2023, the Group operated a complete of 167 chain retail shops (31 March 2023: 154 shops), together with 159 chain retail shops (31 March 2023: 145 shops) in Hong Kong, 7 chain retail shops (31 March 2023: 7 shops) in Macau and 1 chain retail retailer (31 March 2023: 2 shops) in Mainland China, respectively. Through the Monetary Interval below Evaluation, the Group opened 19 new retail shops, and closed 6 shops upon expiration of their respective lease phrases in alignment with the optimisation of the Group’s retailer opening technique.
Rental expense (money foundation) for retail shops was roughly HK$183,154,000 for the 9 months ended 31 December 2023 (for the 12 months ended 31 March 2023: roughly HK$220,230,000). The ratio of rental expense (money foundation) to gross sales income of retail shops for the 9 months ended 31 December 2023 was roughly 9.5%, which was decrease than that of roughly 9.6% for the 12 months ended 31 March 2023.
Stored optimising product combine & enhancing the event of personal label merchandise
Through the Monetary Interval below Evaluation, the Group continued its world procurement coverage and mission by sourcing broad spectrum of merchandise worldwide that meet and fulfill market pattern and demand. To higher cater to the wants of the area people and the worldwide travellers, the Group additional strengthened the availability of fundamental foodstuffs comparable to cereals, noodles, canned meals, milk, chilled and frozen meals, every day requirements and fundamental grocery merchandise. As well as, the Group continued to strengthen its personal label gross sales in retail shops, together with nuts and dried fruits, natural grains, moist tissues, canned meals, biscuits and snacks, and so on., offering customers with extra diversified selections.
For the 9 months ended 31 December 2023, the Group provided a complete of three,724 inventory conserving models (“SKUs”) of merchandise (for the 12 months ended 31 March 2023: 3,770 SKUs) from suppliers principally from abroad markets, and model house owners or importers in Hong Kong, with product origins primarily from, amongst others, Japan, Korea, the US, Europe, Australia, Vietnam and Thailand, in addition to different Asia-Pacific international locations. The Group sourced the most well-liked and stylish meals merchandise from these international locations or areas to supply a globally-diversified, multi-brand and multi-category choice for each buyer.
As at 31 December 2023, the full quantity of inventories of the Group amounted to roughly HK$276,691,000 (31 March 2023: roughly HK$244,219,000), representing a rise of roughly 13.3%. The rise within the Group’s whole quantity of inventories was primarily as a consequence of a rise within the variety of retail shops and preparation for elevated demand in the course of the peak gross sales season within the coming quarter.
Through the Monetary Interval below Evaluation, the Group continued to actively develop personal label merchandise that on one hand enable the Group to seize benefits of pricing and train greater stage of high quality management on its merchandise and then again additional uplift its model consciousness and strengthen prospects’ loyalty. For the 9 months ended 31 December 2023, gross sales derived from personal label merchandise was roughly HK$305,520,000 which accounted for roughly 15.8% of the income of the Group for the 9 months ended 31 December 2023, as in comparison with roughly HK$346,352,000 for the 12 months ended 31 March 2023, which accounted for roughly 15.0% of the income of the Group for the 12 months ended 31 March 2023, representing a rise of roughly 0.8%. Through the Monetary Interval below Evaluation, the Group has launched an combination of 11 personal labels, and the merchandise on the market included nuts and dried fruits, natural grains, moist tissues, canned meals, biscuits and snacks, and so on.
Expanded the shopper base & Launched advertising and marketing actions well timed
With a purpose to additional deepen buyer stickiness and broaden prospects’ protection, the Group used massive knowledge evaluation and reformulated its advertising and marketing technique to launch a brand new three-tier membership scheme and a second-generation cellular app in 2020. The brand new membership scheme helps to raise model positioning and market recognition, and the membership rewards have been totally optimised and enhanced, with extra member advantages comparable to a number of objects buy stamp reward, particular provides for chosen merchandise and entry to newest market data. By way of diversified advertising and marketing methods, the Group goals to internally strengthen the membership core from inside and entice new prospects via exterior growth, in order to successfully and purposefully foster the ties between members and the Group, thereby driving recurring enterprise from members and selling sustainable progress of the Group’s enterprise.
Through the Monetary Interval below Evaluation, the variety of the Group’s members elevated from roughly 2,059,688 as at 31 March 2023 to roughly 2,123,356 as at 31 December 2023, representing a rise of roughly 3%.
The 12 months 2023 marked the tenth anniversary of the Group’s institution. The Group performed varied advertising and marketing and promotional actions in the course of the Monetary Interval below Evaluation, together with the “Tremendous Finest Worth (超級至優價)” promotional marketing campaign, which offered prospects with a collection of particular provides for chosen high quality merchandise to specific our gratitude for our prospects’ assist over time and to reinforce buyer loyalty. In the meantime, the Group continued to promote via tv, newspapers, social media platforms and different media, which efficiently obtained repeat prospects, attracted new prospects and significantly promoted the discussions concerning the Group out there.
PROSPECTS
With a purpose to improve enterprise operational income, the Group will proceed to overview the regional distribution of its model shops, modify its retailer combine via applicable growth insurance policies and applicable leasing methods, and search for appropriate alternatives to broaden the shop community of its main retail manufacturers “Finest Mart 360° ” and world connoisseur retailer “FoodVille” in Hong Kong and Macau, with a goal of reaching a web enhance of 15 retail shops annually to fulfill the demand of various buyer segments for high quality meals merchandise with the sample of dual-brand. The “Finest Mart 360° ” model will concentrate on serving residential areas, and the Group will proceed to optimize the geographical distribution of its shops, overview the spatial format and retailer growth alternatives of its current retail shops, improve retailer gross sales effectivity and supply prospects with a extra snug buying expertise; whereas “FoodVille” targets giant and medium-to-high-end buying malls in Hong Kong in addition to shops with bigger space and excessive buyer visitors and density in order to additional differentiate the 2 manufacturers.
The Group launched China Retailers Hoi Tung Buying and selling Firm Restricted (“CMHT”) as a considerable shareholder in the course of the Monetary Interval below Evaluation, offering substantial strategic assist to the Group and synergy maximization for the sustainable progress of the Group. The Group will proceed to uphold its enterprise mission in providing merchandise with the “Finest High quality” and “Finest Worth” to its prospects, adhere to the idea of worldwide sourcing. By way of leveraging the in depth cooperation community and sources of CMHT, the Group is dedicated to discover extra upstream suppliers, thus endeavoring to enhance its provide chain, optimise its gross sales classes and keep its value competitiveness. Moreover, the Group will proactively supply a diversified vary of meals merchandise worldwide in addition to step up the event of its personal label merchandise, aiming not solely to fulfill market demand for every day requirements but additionally to supply prospects with a broader vary of selections.
Alternatively, the Group has entered right into a gross sales and procurement framework settlement with CMHT and can promote merchandise to and buy merchandise from CMHT and its subsidiaries in FY2024. The Board believes that via CMHT’s strong community of meals importers and distributors, the Group will strengthen its procurement and business-to-business (B2B) operations, and supply a extra diversified vary of imported merchandise and personal label merchandise of the Group to prospects and different retailers in Hong Kong, on-line shops and even retailers or enterprises in abroad markets, enriching the Group’s streams of income and increasing its potential buyer base.
Mr. Hui Chi Kwan, Chief Government Officer of the Group, stated, “Together with the change within the consumption sample of vacationers after pandemic, the retail business continues to be going through the unpredictable enterprise enviornment. We’ll constantly optimize our merchandise combine and retail store distribution to align with client wants in order to make the peaks greater and convey higher returns for the shareholders of the Group.”
Hashtag: #BestMart360
The issuer is solely accountable for the content material of this announcement.
About Finest Mart 360 Holdings Restricted
Finest Mart 360 Holdings Restricted operates chain retail shops below the model “Finest Mart 360˚”, providing extensive number of imported and pre-packaged leisure meals and different grocery merchandise principally from abroad. It’s the Group’s enterprise goal to supply “Finest High quality” and “Finest Worth” merchandise to prospects via steady efforts on world procurement with a mission to supply snug buying setting and pleasurable buying expertise to prospects. As at 31 December 2023, the Group operated a complete of 167 chain retail shops, spanning the entire 18 districts in Hong Kong and strategic places with heavy pedestrian circulation in Macau and Mainland China. Among the many chain retail shops, the worldwide connoisseur model “FoodVille” launched in September 2021 can also be included, concentrating on the medium-to-high-end-market.