2011 interim results - giordanocorp.giordano.com.hk/files/results_material... · 2015. 9. 3. ·...

2011 Interim ResultsAugust 30, 2011

August 30, 2011 Giordano 2011 Interim Results 2

(In HK$ millions) 1H11 1H10 YOY change

Sales 2,649 2,137 +24%

Gross profit 1,581 1,237 +28%

Gross margin 59.7% 57.9% +1.8 pp

EBITDA 550 341 +61%

Operating profit 452 271 +67%

Operating margin 17.1% 12.7% +4.4 pp

Profit attributable to shareholders 346 202 +71%

Net profit margin 13.1% 9.5% + 3.6 pp

Net cash inflow from operating activities 416 260 +60%

Net cash and bank balances 1,132 792 +43%

Inventory days of sales 1 28 25 +3

Number of outlets 2,442 2,206 +236

Operations Highlights – Group

1 Inventory held at period end divided by sales and multiplied by number of days in the period


(In HK cents) 2011 2010

Interim dividend 15.0 4.5

Special dividend - 4.0

Total interim dividend 15.0 8.5

Earnings per share 23.0 13.5

Payout ratio 65% 63%

2011 Interim Dividend

Book close date: September 21, 2011

Dividend payment date: on or about September 30, 2011


177 (8%) 233 (9%)

499 (24%) 631 (24%)

671 (31%)

832 (31%)

790 (37%)

953 (36%)

0

500

1,000

1,500

2,000

2,500

3,000

1H10 1H11

(HK$ millions)

Mainland China

Hong Kong & Taiwan

Rest of Asia Pacific

Export & Licensing

2,137

2,649

Mainland China21% / 15%*

Hong Kong & Taiwan24% / 19%*

Rest of Asia Pacific26% / 15%*

Export & Licensing32%

% to group sales in brackets

1H11 Sales Growth and Contribution by Region

* Sales growth excludes exchange effects


5%

9%

17%

16%

26%

22%

4% 5%

8%6%

14%

11%

0%

5%

10%

15%

20%

25%

30%

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

Total Sales Growth Comparable Store Sales Growth

Total Sales Growth and Comparable Store Sales Growth in the last 6 quarters – Group


1H11 Gross Profit Reconciliation

1,237

104

183

(27)

84

1,581

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1H10 Gross Profit

Volume Increase

Price Increase

CostIncrease

Exchange Difference

1H11 Gross Profit

(HK$ millions)


1H11 Total Operating Expenses Reconciliation

1,007

47%

of sales

63(14%)

51(23%)

26(23%)

16(46%)

38

1,201

45% of sales

0

200

400

600

800

1,000

1,200

1,400

1H10 Total Operating Expenses

Shop Rental Shop Staff Costs Other Shop Overhead

Advertising & Promotion

Others 1H11 Total Operating Expenses

(HK$ millions)


501

69

(44) (18)

(26)

(72)

410

0

100

200

300

400

500

600

EBIT Depreciation & Amortization of

Rental Prepayment

Capital Expenditure

Share of Pre-tax Profit of JCE/Assoc

(net of dividend income)

Change in Working Capital

Net Interest Received & Tax

Paid

Free Cash Flow from Operations

(HK$ millions)

1H11 EBIT and Free Cash Flow from Operations


1H11 Change in Net Cash and Bank Balances

978

410 72

(300) (28)

1,132

0

200

400

600

800

1,000

1,200

1,400

1,600

Net Cash & Bank Balances on 31-Dec-2010

Free Cash Flow from Operations

Proceeds from Issuance of New Shares

Dividend Paid to Shareholders and Non-controlling

Interests

Others Net Cash & Bank Balances on 30-Jun-2011

(HK$ millions)


28

63

44

50 49 49

0

10

20

30

40

50

60

70

1H10 2H10 1H11

(HK$ millions) Capital Expenditure

Capital Expenditure Depreciation & Amortization

197

282 264

17

22

18

0

5

10

15

20

25

0

50

100

150

200

250

300

30-Jun-10 31-Dec-10 30-Jun-11

(Days)(HK$ millions) Trade Receivables

Trade ReceivablesTurnover Days (Trade receivables at period end / Average daily sales in the period)

136 163 168

28 30 29

0

5

10

15

20

25

30

35

0

20

40

60

80

100

120

140

160

180

30-Jun-10 31-Dec-10 30-Jun-11

(Days)(HK$ millions) Trade Payables

Trade PayablesTurnover Days (Trade payables at period end / Average daily cost of sales in the period)

296

404 411

25

31 28

0

5

10

15

20

25

30

35

0

50

100

150

200

250

300

350

400

450

30-Jun-10 31-Dec-10 30-Jun-11

(Days)(HK$ millions) Inventories

Inventory

Turnover Days (Inventory at period end / Average daily sales in the period)


Store Number by Market as at 30 June 2011

Mainland China, 52% 1,262 outlets as at Jun-11 +74 outlets in 1H11 +161 outlets vs Jun-10

Worldwide Total

2,442 outlets+89 in 1H11

+236 vs Jun-10

Taiwan, 8% 186 outlets as at Jun-11 +5 outlets in 1H11 +10 outlets vs Jun-10

Indonesia, 4% 108 outlets as at Jun-11 +3 outlets in 1H11 +7 outlets vs Jun-10

Thailand, 4% 92 outlets as at Jun-11 -1 outlet in 1H11 +1 outlet vs Jun-10

Hong Kong & Macau, 3% 75 outlets as at Jun-11 Unchanged in 1H11 +1 outlet vs Jun-10

Malaysia, 3% 72 outlets as at Jun-11 +2 outlets in 1H11 +7 outlets vs Jun-10

Singapore, 2% 55 outlets as at Jun-11 +3 outlets in 1H11 +7 outlets vs Jun-10

Australia, 1% 33 outlets as at Jun-11 -3 outlets in 1H11 -7 outlets vs Jun-10

India, 1% 31 outlets as at Jun-11 +3 outlets in 1H11 +8 outlets vs Jun-10

Other Markets, 6% 149 outlets as at Jun-11 Unchanged in 1H11 +23 outlets vs Jun-10

South Korea, 9% 215 outlets as at Jun-11 +1 outlet in 1H11 +7 outlets vs Jun-10

Middle East, 7% 164 outlets as at Jun-11 +2 outlets in 1H11 +11 outlets vs Jun-10



Total Sales 1 2,416 1,960 +23%

Gross profit 1,528 1,194 +28%




Global brand sales 2 3,624 3,101 +17%

Comparable store sales increase 3 12% 4%


Operations Highlights – Retail & Distribution

1 Total Sales are total retail sales in self-operated stores and total wholesale sales to franchisees, translated at average $ exchange rates.

2 Global Brand Sales are total retail sales, at constant $ exchange rates, in self-operated and franchised stores, operated by subsidiaries, JCE and associated company.

3 Comparable Store Sales are total Brand sales, at constant $ exchange rates, from existing stores that have been operating throughout the prior period.

1H11 Retail & Distribution Sales by Market

790

392

279

172

111 78

73 62 3

953(912 ops + 41 forex)

472

360(327 ops + 33 forex)

208(186 ops + 22 forex)

142(136 ops + 6 forex)

102(93 ops + 9 forex)

88(75 ops + 13 forex) 80

(75 ops + 5 forex)

11 0

200

400

600

800

1,000

1,200

Mainland China

Hong Kong Taiwan Singapore Indonesia Malaysia Australia Thailand Others

(HK$ millions)

0

200

400

600

800

1,000

1,200

Mainland China

Hong Kong Taiwan Singapore Indonesia Malaysia Australia Thailand Others

(HK$ millions)

23%*

15%*

20%

17%*

8%*

19%*3%*

21%*

1H11 Retail & Distribution Sales: 2,416 (2,287 ops + 129 forex) 17%*

* Sales growth excludes exchange effects

August 30, 2011 13Giordano 2011 Interim Results


253 246 278 332 320 311

364 307 329

447 438 394

423 367

403

588 550

403

0

200

400

600

800

1,000

1,200

1,400

1,600

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

(HK$ millions)

Rest of Asia Pacific Hong Kong & Taiwan Mainland China

Retail & Distribution Sales by Region for the last 6 quarters

1,040

9201,010

1,3671,308

1,108


Retail & Distribution Gross Profit (Margin) by Region

442(55.9%)

435 (64.8%)

317 (63.5%)

543(57.0%)

564 (67.8%)

421(66.7%)

0

100

200

300

400

500

600

Mainland China Hong Kong and Taiwan Rest of Asia Pacific

(HK$ millions)1H10 1H11


Retail & Distribution Operating Profit (Margin) by Region

124(15.7%)

85(12.7%)

61(12.2%)

157(16.5%)

164(19.7%)

137(21.7%)

(20)

0

20

40

60

80

100

120

140

160

180


(HK$ millions)1H10 1H11

-20

0

20

40

60

80

100

120

140

160

180


(HK$ millions)

(20)

-

20

40

60

80

100

120

140

160

180


(HK$ millions)

(20)

-

20

40

60

80

100

120

140

160

180


(HK$ millions)

(20)

-

20

40

60

80

100

120

140

160

180


(HK$ millions)

HK 54 (13.8%)

HK 97 (20.6%)

TW 31 (11.1%)

TW 67 (18.6%)

SG 45 (21.6%)

SG 23 (13.4%)

ID 31 (27.9%)

MY 14 (17.9%)

TH 7 (11.3%)

AU -14 (-19.2%)

ID 46 (32.4%)

MY 27 (26.5%)

TH 16 (20.0%)

AU 3 (3.4%)



Total sales 1

Retail self-operated stores 626 521 +20%

Wholesale to franchisees 327 269 +22%

Total sales 953 790 +21%

Total brand sales 2

Total sales 1,198 1,031 +16%

Comparable store sales increase 3 +9% Flat

Gross profit 543 442 +23%





Self-operated stores 495 443 +52

Franchised stores 767 658 +109

Retail & Distribution Review by Region – Mainland China


2 Total Brand Sales are total retail sales, at constant $ exchange rates, in self-operated and franchised stores.

3 Comparable Store Sales are total Brand sales, at constant $ exchange rates, from existing stores that have been open in the prior period.


-1%

5%

16%

16%

30%

10%

-2%

2%

6%

2%

14%

4%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11


Total Sales Growth and Comparable Store Sales Growth in the last 6 quarters – Mainland China


1H11 Gross Profit Reconciliation – Mainland China

442

53 28

(3)

23

543

0

100

200

300

400

500

600

1H10 Gross Profit

Volume Increase

Price Increase

CostIncrease

Exchange Difference

1H11 Gross Profit

(HK$ millions)


Retail & Distribution Review by Region – Hong Kong and Taiwan


Total sales 1 832 671 +24%

Comparable store sales increase 2 +17% +8%




Operating margin 19.7% 12.7% +7.0pp

Number of self-operated stores 261 250 +11

1 Total Sales are total retail sales translated at average $ exchange rates.

2 Comparable Store Sales are total sales, at constant $ exchange rates, from existing stores that have been open in the prior period.


3%

9%

13%11%

20%

28%

8%

10%

11%

7%

14%

20%

0%

5%

10%

15%

20%

25%

30%

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11


Total Sales Growth and Comparable Store Sales Growth in the last 6 quarters – Hong Kong and Taiwan


1H11 Gross Profit Reconciliation – Hong Kong and Taiwan

435

15

104

(12)

22

564

0

100

200

300

400

500

600

1H10 Gross Profit

Volume Increase

Price Increase

CostIncrease

Exchange Difference

1H11 Gross Profit

(HK$ millions)


Retail & Distribution Review by Region – Rest of Asia Pacific


Total sales 1 631 499 +26%






Number of self-operated stores 391 345 +46




25%

12%

15% 16%

27% 26%

13%

4%6%

11%12% 13%

0%

5%

10%

15%

20%

25%

30%

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11


Total Sales Growth and Comparable Store Sales Growth in the last 6 quarters – Rest of Asia Pacific


1H11 Gross Profit Reconciliation – Rest of Asia Pacific

317

30

26 11

37

421

0

50

100

150

200

250

300

350

400

450

1H10 Gross Profit

Volume Increase

Price Increase

CostDecrease

Exchange Difference

1H11 Gross Profit

(HK$ millions)


Retail & Distribution Review by Brand – Giordano & Giordano Junior


Total sales 1 2,102 1,702 +24%








Retail & Distribution Review by Brand – BSX


Total sales 1 111 81 +37%




Number of outlets 88 62 +26




Retail & Distribution Review by Brand – Giordano Ladies


Total sales 1 159 129 +23%








Retail & Distribution Review by Brand – Concepts One


Total sales 1 26 36 -28%

Comparable store sales decrease 2 -22% -38%

Operating loss (3) (6) +50%

Operating margin (11.5%) (16.7%) +5.2 pp






Total Sales 254 195 +30%




Operations Highlights – Export & Licensing


South Korea 1 (In HK$ millions) 1H11 1H10 YOY change

Total sales 2 724 593 +22%



Operations Highlights – Jointly Controlled & Associated Companies

Middle East 1 (In HK$ millions) 1H11 1H10 YOY change

Total sales 2 278 207 +34%

Comparable store sales increase/decrease 3 +35% -8%


1 On 30 June 2011, the Group held 48.5% in Giordano South Korea and 20% in Giordano Middle East.

2 Total Sales are total wholesale sales to JCE/Associate, translated at average $ exchange rates.

3 Comparable Store Sales are total Brand sales, at constant $ exchange rates, from existing stores that have been open in the prior period.

Outlook:


1. Concentrate on Mainland China expansion

– Develop a strong regional management structure in Mainland China

– Focus on key franchisee accounts

2. Increase marketing investment to drive sales, reinforce and enhance brand power

– Increase advertising and promotion in targeted local promotional campaigns to support expansion across the Group

– Build brand value through strategic pricing, better product mix and effective marketing

3. Maintain gross and operating margins

– Maintain and enhance pricing discipline

– Sustain and improve supply chain excellence

– Business process simplification


Summary of Total Sales and Comparable Store Sales Growth by Market

Total sales 1 Comparable store sales 2

(HK$ millions) 1H11 1H10 YOY increase 1H11 1H10

Mainland China 953 790 +21% +9% Flat

Hong Kong 472 392 +20% +19% +11%

Taiwan 360 279 +29% +14% +4%

Singapore 208 172 +21% +5% +5%

Indonesia 142 111 +28% +15% +20%

Malaysia 102 78 +31% +14% +21%

Thailand 80 62 +29% +21% +12%

Australia 88 73 +21% +19% -9%

Other Markets 11 3 +267% +21% -18%

Retail & Distribution total 2,416 1,960 +23% +12% +5%

Export & Licensing total 254 195 +30%

Inter-segment sales (21) (18) +17%

Group total 2,649 2,137 +24%


2 Comparable Store Sales are total Brand sales, at constant $ exchange rates, from existing stores that have been operating throughout the prior period.


Global Retail Network

Number of outlets

As at 30-Jun-2011As at

Jun-10ChangeGiordano

& JuniorGiordano

LadiesConcepts

OneBSX Others Total

Mainland China 1,170 18 22 52 - 1,262 1,101 +161

Hong Kong & Macau 43 11 3 18 - 75 74 +1

Taiwan 156 13 - 17 - 186 176 +10

Singapore 52 3 - - - 55 48 +7

Indonesia 95 2 1 1 9 108 101 +7

Malaysia 71 1 - - - 72 65 +7

Thailand 91 1 - - - 92 91 +1

Australia 33 - - - - 33 40 -7

Other Markets 31 - - - - 31 - +31

Retail & Distribution total 1,742 49 26 88 9 1,914 1,696 +218

South Korea 169 - - 46 - 215 208 +7

Middle East 1 161 - - 3 - 164 153 +11

Other Markets 134 1 1 13 - 149 149 -

Export & Licensing total 464 1 1 62 - 528 510 +18

Group total 2,206 50 27 150 9 2,442 2,206 +236

2011 interim results - giordanocorp.giordano.com.hk/files/results_material... · 2015. 9. 3. ·...

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