Viva Goods Company (933) H2 2024 earnings summary

Executive summary

• Revenue for 2024 declined 7.1% year-over-year to HK$10,427.1 million, mainly due to global economic downturn, weak consumer spending, and strategic repositioning in Bossini.

• Net loss attributable to equity holders narrowed to HK$70.4 million from HK$119.0 million, reflecting improved cost management and lower impairment charges.

• Adjusted EBITDA decreased by 3.3% to HK$908.4 million, mainly due to reduced profit share from joint ventures and associates.

• Bossini completed privatization in early 2025, becoming a wholly-owned subsidiary, enhancing resource allocation and flexibility.

• The Group maintained stable cash flow and healthy liquidity, laying a foundation for sustainable development.

Financial highlights

• Total revenue for FY2024 was HK$10,427.1 million, down 7.1% year-over-year.

• Gross profit margin remained stable at 45.7% year-over-year.

• Net loss attributable to equity holders was HK$70.4 million, a significant improvement from HK$119.0 million loss in 2023.

• Adjusted EBITDA was HK$908.4 million, down 3.3% from 2023.

• Basic loss per share was 0.62 HK cents (2023: 1.04 HK cents).

Segment performance

• Multi-brand apparel and footwear contributed HK$9,867.8 million (94.6% of revenue); Sports Experience contributed HK$559.3 million (5.4%).

• Clarks revenue fell 6.6% year-over-year to HK$9,007.6 million, mainly due to inflation and weak consumer demand in Europe and the US; gross margin improved to 47.9%.

• Bossini revenue dropped 25.3% year-over-year to HK$455.6 million, impacted by store closures and higher discounts; gross margin declined to 49.2%.

• Sports experience segment revenue rose 4.1% to HK$559.3 million, with operating profit up to HK$79.0 million, driven by e-sports and sports parks.