Viva Goods Company (933) H2 2025 earnings summary

Executive summary

• Achieved a turnaround to net profit of HK$170.4 million in 2025 from a net loss of HK$70.4 million in 2024, driven by improved cost management and reduced impairment charges in the multi-brand apparel and footwear segment.

• Revenue declined 1.2% year-over-year to HK$10,299.5 million, mainly due to lower sales in Clarks and Bossini, and US tariffs and geopolitical risks.

• Adjusted EBITDA rose 46.5% year-over-year to HK$1,331.1 million, reflecting significant operational efficiency gains.

• Board recommends a special dividend of HK$0.008 per share for the year ended 31 December 2025.

• Strategic brand and product adjustments, along with cost controls, improved profitability.

Financial highlights

• Total revenue for 2025 was HK$10,299.5 million, down 1.2% year-over-year.

• Gross profit margin increased to 46.4%, up 0.7 percentage points from 2024.

• Net profit attributable to equity holders was HK$170.4 million, reversing a loss from the previous year.

• Adjusted EBITDA rose to HK$1,331.1 million, a 46.5% increase year-over-year.

• Basic EPS was 1.47 HK cents (2024: loss per share 0.62 HK cents).

Outlook and guidance

• Focus on rebranding legacy brands, operational efficiency, and increasing brand premiums.

• Plans to expand overseas markets and enrich the brand portfolio, targeting consumer brands with growth potential.

• Global economic growth expected to remain moderate at 3.1% in 2026, with inflationary pressures easing.

• Commitment to product innovation, service upgrades, and differentiated marketing to build resilience.

• Losses in non-core consumer businesses expected to reduce year by year and remain controllable.