Blue Moon Group (6993) H2 2024 earnings summary

Executive summary

• Revenue rose 16.8% year-over-year to HK$8,555.6 million, driven by growth in all product categories and channels except direct sales to key accounts.

• Gross profit increased 14.2% to HK$5,183.4 million, but gross margin slightly declined to 60.6% from 62.0%.

• A net loss of HK$749.3 million was recorded, reversing from a profit of HK$325.3 million in the prior year, mainly due to higher selling and distribution expenses.

• The Board recommended a final dividend of HK6.0 cents per share.

Financial highlights

• Online sales channels grew 34.1% year-over-year, now representing 59.7% of total revenue.

• Selling and distribution expenses surged 55.6% to HK$5,048.5 million, reflecting increased marketing and channel investments.

• Operating loss reached HK$1,004.2 million, compared to an operating profit of HK$130.4 million last year.

• Finance income fell 17.8% to HK$223.8 million; finance costs decreased 30.7% to HK$4.7 million.

• Basic and diluted loss per share were HK13.74 cents, versus earnings per share of HK5.84 cents last year.

Outlook and guidance

• Plans to continue product innovation, expand omni-channel distribution, and enhance digitalisation.

• Focus on knowledge-based marketing and sustainable development, with ongoing review of dividend policy.