Bossini Announces 2009/10 Interim Results
Maintaining Healthy Financial Position
Cash and Bank Balances Reached HK$449 million
Operating Profit Increased 9% to HK$64 million
HONG KONG, March 17 /PRNewswire-Asia/ --
Results Highlights
For the 6 months ended
31 December
2009 2008 Change
Revenue HK$1,171 mn HK$1,186 mn -1 %
Gross profit HK$600 mn HK$595 mn +1 %
Gross profit margin 51 % 50 % +1% pt
Operating profit HK$64 mn HK$59 mn +9 %
Profit for the period
attributable to equity holders HK$50 mn HK$52 mn -3 %
Basic EPS attributable to
Ordinary equity holders HK3.14 cents HK3.24 cents -3 %
Interim dividend per share HK1.1 cents HK1.0 cent +10 %
At 28 February 2010 At 31 December 2009 At 31 December 2008
Cash and HK$577 mn HK$449 mn HK$323 mn
bank balances
Net cash* HK$495 mn HK$331 mn HK$249 mn
*Time deposits, cash and bank balances less bank loans
Bossini International Holdings Limited ("Bossini" or the "Group"; HKEx: 592) announced today its interim results for the 6 months ended 31 December 2009. Revenue for the period under review recorded a slight decline of 1% and stood at HK$1,171 million (2008: HK$1,186 million). Gross profit margin was improved to 51% (2008: 50%), Operating profit improved 9% to HK$64 million (2008: HK$59 million) and profit for the period attributable to equity holders was HK$50 million (2008: HK$52 million), while basic earnings per share was HK3.14 cents (2008: HK3.24 cents).
The Board declared payment of an interim dividend of HK1.1 cents (2008: HK1.0 cent) per ordinary share for the 6 months ended 31 December 2009.
Bossini is in a healthy financial position. Cash and bank balances as at 31 December 2009 reached HK$449 million and further increased to HK$577 million as at 28 February 2010. Net cash amounted to HK$331 million as at 31 December 2009 and rose to HK$495 million as at 28 February 2010.
Ms. Kathy Chan, Deputy Chairman and Chief Executive Officer of Bossini, said, "While the period under review was a challenging period, we were on the right track and recorded stable business developments. We maintained a steady growth of business in Mainland China, continued promotions of the newly launched 'be happy' brand value worldwide and optimised operational efficiencies particularly in inventory management. We are pleased to report that these strategies yielded decent results during the first half of the fiscal year under review in spite of the financial tsunami."
Overall retail same-store sales growth reached 2% (2008: 1% growth) during the period under review. The Group, with its roots in Hong Kong, capitalised on opportunities and delivered decent retail sales growth. Same-store sales in Hong Kong recorded a remarkable growth of 8% (2008: 4% growth) in the period under review. However, it could not offset the sales decline arising from the decrease in export franchising business, which for the first time recorded decline after years of solid growth. Revenue generated from Hong Kong, comprising retail sales and export franchising, amounted to HK$642 million (2008: HK$687 million). It remained the major revenue contributor to the Group during the period under review, accounting for 55% (2008: 57%) of consolidated revenue.
The Group remained focus on seeking modest expansion in the Mainland China market mostly through franchising business during the period under review. To this end the Group added 101 new directly managed stores and 149 franchised stores compared to 31 December 2008.
The Group continued to launch co-branded and licensed products with brands that share common brand values and target customer groups with "bossini". bossini x Campbell Soup and bossini x Paddington Bear were launched during the period, both series were warmly embraced by customers.
Ms. Chan added, "The Group will remain cautious and pragmatic in terms of business development to meet the challenges ahead within the second half of the financial year. We have a clear roadmap for our future development and are confident that we are on the road to renewed growth. "
The Group's focus will remain solid on the Mainland China market expansion, brand enhancement and optimising operational efficiencies. These will be complemented with further efforts to improve cost effectiveness and develop a pragmatic approach to expand markets.
Ms. Chan concluded, "As a result of our increasing focus on product offerings and the progressive pick-up of the economy, the Group's sales performance saw improvement in January and February 2010 with a 12% gross profit growth. The Group will also continue with efforts to bolster its competitive edge to provide shareholders with positive results."
Appendix - Store composition by type and geographical location is detailed
as below:
At 31 December 2009 At 31 December 2008
Directly Franchised Directly Franchised
managed stores managed stores
stores stores
Hong Kong 41 -- 42 --
Mainland China 417 310 316 161
Taiwan 84 -- 87 --
Singapore 29 -- 30 --
Malaysia 21 -- 18 --
Other countries -- 433 -- 436
and regions
Total 592 743 493 597
About Bossini International Holdings Limited
Bossini is a leading apparel brand owner, retailer and franchiser in the region. Headquartered in Hong Kong, Bossini launched its first retail store in 1987. Over the past two decades, the Group has rapidly established an extensive international operating platform and distribution network that extends to 1,335 stores covering about 33 countries and regions worldwide.
Renowned for its comfortable, easy to mix-and-match, colourful and energetic style, Bossini offers a full range of good value for money, casual wear apparel products including ladies', men's, young, kids' and babies' wear, which are designed to fit customer needs.
For further information, please contact:
Porda International (Finance) PR Group
Harriet Lau / Kelly Fung / Cara Pang
Tel: +852-3150-6761 / +852-3150-6763 / +852-3150-6736
Fax: +852-3150-6728
Email: [email protected] / [email protected] /
[email protected]
SOURCE Bossini International Holdings Limited
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