Viva Goods Company (933) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2025 was HK$4,810.5 million, down 5.7% year-over-year, mainly due to declines in the multi-brand apparel and footwear segment, especially Clarks and Bossini.

• Net profit attributable to equity holders rose 60.9% to HK$181.5 million, driven by enhanced cost control and reduced operating expenses.

• Adjusted EBITDA increased 13.6% to HK$610.1 million, reflecting improved operational efficiency and cost management.

• Bossini International was privatized and became a wholly-owned subsidiary, streamlining operations and enhancing flexibility.

• Major leadership changes included the appointment of Victor Herrero as Co-CEO and Acting CEO of Clarks in June 2025.

Financial highlights

• Gross profit was HK$2,206.0 million, down 7.0% year-over-year, with overall gross margin at 45.9%.

• Selling and distribution expenses fell by HK$251.4 million to HK$1,543.5 million, mainly due to store closures and cost management.

• Administrative expenses dropped to HK$664.9 million, reflecting better cost management and no one-off restructuring costs.

• Finance costs-net increased to HK$76.0 million, mainly due to lower interest income from defined benefit schemes.

• Share of profits from associates and joint ventures rose to HK$258.4 million, reflecting increased ownership in Double Happiness.

Outlook and guidance

• The group expects continued macroeconomic headwinds, including weak global consumer confidence, high interest rates, and geopolitical uncertainties.

• Management will maintain prudent cash flow management and flexible business strategies to address ongoing uncertainties.

• Focus remains on rebranding legacy brands, expanding overseas, and enriching the brand portfolio.

• Plans to open about 20 Haglöfs stores in Mainland China within the year.

• Synergy expected between sports experience and consumer goods segments, leveraging exclusive sports event rights.