China Tourism Group Duty Free (601888) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 was RMB 43.02 billion, down 15.38% year-over-year; Q3 revenue was RMB 11.76 billion, down 21.52%.

• Net profit attributable to shareholders for the first nine months was RMB 3.92 billion, down 24.72%; Q3 net profit was RMB 636 million, down 52.53%.

• Duty-free store sales at Beijing airports grew over 140% and at Shanghai airports nearly 60% year-over-year.

• 165 new brands were introduced, with domestic brands accounting for over 40%.

• Declines attributed to weak consumer demand and typhoon impacts in September.

Financial highlights

• Q3 basic and diluted EPS were RMB 0.3076, down 52.53% year-over-year; nine-month EPS was RMB 1.8950, down 24.70%.

• Operating profit for the first nine months was RMB 5.46 billion, down 16.92% year-over-year.

• Operating cash flow for the first nine months was RMB 5.10 billion, down 62.03% year-over-year.

• Gross margin for the first nine months was approximately 33.1%; main business gross margin increased to 32.57%, up 1.09 percentage points.

• Total assets at quarter-end were RMB 75.59 billion, down 4.16% from year-end 2023.

Outlook and guidance

• Management cited continued pressure from subdued consumer sentiment and external disruptions, indicating a cautious outlook for the near term.

• The company continues to focus on high-quality development, product innovation, and digital transformation.