CTF opened a net of 237 PoS in 1H FY2019

Revenue up by 20.0% yet, Core

Operating profit surged by 24.7% YoY

According to Chow Tai Fook Jewellery Group Limited [CTF], interim results for the six months ended 30 September 2018 (1HFY2019), the Group recorded a revenue of HK$29,703 million for 1H FY2019 that was in  1H FY2018 of HK$24,754 million, shows increase of 20.0% YoY. 

Key reason is the stabilising consumer demand and reviving Mainland visitation which fuelled the jewellery market. Gross profit amounted to HK$8,529 million over the 1H FY2018 of HK$7,166 million. Adjusted gross profit margin was down by 60 bps to 28.1%, mainly due to a higher sales contribution from gold products and wholesales business, Core operating profit surged by 24.7% YoY. Core operating profit margin increased slightly to 10.1%.

With Business Review, CTF says, the jewellery retail landscape exhibited positive momentum in Greater China during the period, thanks to steady economic recovery and improving consumer sentiment. The Group’s operations in Hong Kong and Macau grew robustly in 1H FY2019 due to reviving local consumer consumption demand and recovering tourism from Mainland China. Same Store Sales Growth of Hong Kong and Macau accelerated to 24.4% during 1HFY2019, bolstered by both vibrant ASP and volume growth. While in Mainland China, Same Store Sales rose by 4.9% in 1HFY2019, primarily driven by an increase of Average Selling Price.

In 1HFY2019, the Group opened a net of 237 POS, bringing the total number of POS to 2,822 as at 30 September 2018. In Mainland China, in order to gauge market potential in lower tier cities and shopping malls, net openings amounted to 233 PoS in 1HFY2019, reaching 2,682 PoS; while retail network footprint remained stable at 99 PoS in Hong Kong and Macau as at 30 September 2018. During the period, the Group also opened 4 POS in other markets including Korea, Japan, Malaysia and Singapore.

Over the past few years, the Group has made sound progress in developing the multi-brand strategy to cater to different customer segments and deliver experience-driven retail offering. For its iconic brand Chow Tai Fook Jewellery, the Group has revamped selective PoS and upgraded with differentiated store layouts and product offerings.