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Highlights
- Revenue reached HK$452.1 million, representing an increase of 22.9% as compared with last year
- Adjusted net profit* increased by 23.0% to HK$34.8 million
- Same store sales growth for the TenRen retail stores have recorded double-digit growth at 13.7%
- Plans to open 13 new outlets in FY2019 and introduce new retails brands for the retail business
- Intends to enlarge the brand/product portfolio for the distribution business
Financial Highlights https://bit.ly/2MZ9vgy |
HONG KONG, June 27, 2018 - (Media OutReach) - B & S International Holdings Ltd. ("B & S International", together with its subsidiaries, the "Group"; stock code: 1705), a food and beverage company, announced its annual results. For the year ended 31 March 2018 (the "Reporting Period"), B & S International recorded a total revenue of approximately HK$452.1 million (2017: approximately HK$368.0 million), representing an increase of approximately 22.9% which was mainly attributable to additional sales brought by the retail business. Gross profit increased to approximately HK$115.8 million (2017: approximately HK$91.2 million), representing an increase of approximately 27.0%.
If the non-recurring listing expenses of approximately HK$19.6 million were excluded, the Group's adjusted net profit would have been approximately HK$34.8 million (2017: approximately HK$28.3 million), representing an increase of approximately 23.0%. The Board of Directors recommends the payment of a final dividend of HK 3 cents per share for the year ended 31 March 2018.
Business Review
Distribution Business
For distribution business, the Group distributes and markets a diversified portfolio of overseas branded food and beverage products to retailers, such as supermarket, pharmacy, convenience store and department store chains in Hong Kong. The Group was able to offer a total of approximately 7,000 SKUs of food and beverage products from over 100 brands, including "UHA" and "Hsin Tung Yang" which are regarded as popular items by the market. During the Reporting Period, the revenue from the distribution business increased to approximately HK$255.4 million (2017: approximately HK$243.1 million), representing an increase of approximately HK$12.3 million, which contributed approximately 56.5% of the total revenue. The increase is mainly due to the increase of sales volume to local retailers in Hong Kong.
Retail Business
The Group principally prepare and/or sell overseas branded food and beverage products licensed to the Group at the Group's self-operated retail outlets in Hong Kong. As at 31 March 2018, the Group had set up 43 self-operated retail outlets. During the Reporting Period, the strengthening of consumer's spending power drove the expanding momentum of the Group's retail network. The number of "TenRen" retail outlets has increased by 9 stores to 33 stores (2017: 24 stores).
Same store sales growth for the TenRen retail stores has recorded double-digit growth at 13.7% during the Reporting Period (2017: 8.9%). The growth in revenue from "TenRen" retail outlets was not only driven by the expansion of its retail network in terms of number of retail outlets, but also by the Group's ability to grow its sales within the existing outlets.
During the Reporting Period, the Group had also opened one outlet for Uncle Tetsu and introduced two new retail brands to Hong Kong, one is a British chocolate brand, "Hotel Chocolat", and the other is a Japanese ramen brand originated in Taiwan, "Jiu Tang Wu". As at 31 March 2018, there were 3 retail outlets for the British chocolate brand and 2 outlets for the ramen brand. The revenue from the retail business increased to approximately HK$196.7 million (2017: approximately HK$124.9 million), representing an increase of approximately HK$71.8 million which contributed approximately 43.5% of the total revenue.
Future Prospects
Looking forward to opportunities and challenges in 2018, the Group will continue to adhere of products of high quality and the multi-brand development strategy.
For the retail business, the Group plans to open new outlets and introduce new retails brands. The Group intends to capture the strong growth potentials by expanding the retail network for its existing licenced brands, particularly "TenRen", and sourcing and obtaining licences from other brands to launch new retail chains in Hong Kong. The Group will remain prudent when expanding its retail business by continuing to adopt the self-operated model. The major expansion plan of the Group's existing retail brands have been set out as follows:
Total Number of Stores For the year ended 31 March
TenRen - 2018: 33; 2019: 41; 2020: 49
Jiu Tang Wu - 2018: 2; 2019: 7; 2020: 12
For the distribution business, the Group intends to enlarge its brand/product portfolio to remain competitive in the market and ensure a wider selection for its customers. The Group will focus on overseas brands/products that suit the tastes and preferences of Hong Kong consumers by conducting market research and feasibility assessments on the potential brands or products based on criteria such as popularity, quality, pricing, brand image and logistics requirements so as to monitor market trends and customer preferences to improve the product portfolio.
About B & S International Holdings Ltd.
The Group is a well-established food and beverage company, with over 28 years of operating history in Hong Kong. The Group has two business segments, namely the distribution business and the retail business. The Group offers various food and beverage products from over 100 brands during the past three years, including top brands such as "UHA" under its distribution business. Currently, the Group operates 42 retail outlets and manages one retail outlet under its retail business, including top retail brand "TenRen", which ranked first in the tea drinks chain market in Hong Kong by revenue for the period from 1 November 2016 to 31 October 2017.
For media inquiries, please contact:
Stimulus Investor Relations Ltd.
Contact: Ms. Jessica Choi / Mr. Michael Yeung
Tel: +852 3159 2916 / +852 3159 2994
Email: jessica.choi@stimulus-ir.com / michael.yeung@stimulus-ir.com
Topic: Press release summary
Source: B & S International Holdings Ltd.
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