佐丹奴国际(00709) - 2024 - 年度财报

Financial Performance - Revenue for 2024 reached HK$3,919 million, a 1.2% increase from HK$3,873 million in 2023[6] - Gross profit for 2024 was HK$2,234 million, with a gross margin of 57.0%, down from 58.4% in 2023[6] - Operating profit decreased to HK$377 million in 2024, resulting in an operating margin of 9.6%, compared to 13.0% in 2023[6] - Profit attributable to shareholders for 2024 was HK$216 million, with a net profit margin of 5.5%, down from 8.9% in 2023[6] - Cash and bank balances less bank loans stood at HK$810 million, a decrease from HK$905 million in 2023[6] - Total assets decreased to HK$3,766 million in 2024, down from HK$3,856 million in 2023[6] - Market capitalization decreased to HK$2,715 million in 2024, down from HK$4,259 million in 2023[6] - EBITDA for the year was HK$880 million, with an EBITDA margin of 22.5%, down from 26.2% in 2023[8] - Operating expenses as a percentage of revenue increased to 48.7% (2023: 47.2%), mainly driven by non-recurring expenses in the first half[51] - The net profit attributable to the shareholders of the Company was HK$216 million (2023: HK$345 million), primarily due to non-recurring expenses and underperformance in Greater China[51] Store Operations - The number of direct-operated stores decreased to 973 in 2024, down from 1,055 in 2023[6] - The total number of stores worldwide was 1,732 in 2024, a decline from 1,822 in 2023[6] - Same-store sales increased by 2.3% year-on-year, driven by a positive growth of 6.4% in the second half, compared to a 1.4% decline in the first half[60] - The number of stores at year-end decreased to 1,732 from 1,822 in the previous year, reflecting a reduction of 90 stores[54] - The company plans to implement targeted initiatives to enhance brand investment and improve store performance in Mainland China, aiming for sustainable growth[115] Strategic Initiatives - The company has launched a five-year strategy called "Beyond Boundaries" aimed at transforming Giordano into a growth company by focusing on core strengths such as design, development, sourcing, and sales of quality products[22][33] - The implementation of "One Giordano" aims to create a unified team with shared talent and resources to enhance operational efficiency[42] - The management team remains committed to creating value for customers, shareholders, and stakeholders as part of the ongoing transformation[39] - The company is committed to executing its 'Beyond Boundaries' 5-year strategy, focusing on disciplined expense management and long-term growth[88] - The strategic roadmap includes a goal to achieve a high single to low double-digit compound annual growth rate (CAGR) between 2025 and 2030[164] Market Performance - Giordano's revenue decreased by 3.4% in the first half of 2024, but achieved a 5.9% growth in the second half following the implementation of Quick Win initiatives[30][34] - On a constant exchange rate basis, revenue was up by 3.2% for the full year, fueled by improved performances in Southeast Asia and Australia, as well as the online business in Mainland China[51] - The Group achieved a notable 1.2% increase in revenue for the full year, driven by a robust sales rebound of 5.9% in the second half[51] - The Mainland China wholesale to franchisees recorded a 15.0% decline, with revenue dropping to HK$119 million from HK$140 million[69] - Online sales reported significant growth of 11.3%, with a 22.4% increase in the second half, supported by e-commerce Quick Win initiatives[65] Leadership and Management - Under the leadership of CEO Colin Currie, the management team is committed to creating long-term value for shareholders through disciplined investment and operational excellence[21][26] - The Board of Directors fully supports the strategic direction set by the management team, emphasizing the importance of strong leadership during the transformation[23][24] - Mr. Colin Melville Kennedy CURRIE was appointed as the Chief Executive Officer and Executive Director of the Company on April 5, 2024, bringing over 30 years of international general management experience[200] - Dr. Chan Ka Wai will assume the roles of Chief Financial Officer and Chief Sales Officer starting January 1, 2025, after serving as Chief Operating Officer since April 1, 2015[199] Financial Health - Cash and bank balances decreased to HK$810 million in 2024 from HK$905 million in 2023, primarily due to reduced operating cash inflows[141] - The company's leverage ratio remained stable at 1.2% in 2024, compared to 1.3% in 2023, indicating a solid financial position[141] - The Group's gearing ratio improved slightly to 1.2% in 2024 from 1.3% in 2023, with a current ratio of 1.5 compared to 1.6 in the previous year[147] - The Group's trade receivables turnover days improved to 44 days in 2024 from 52 days in 2023, while trade payables increased to 63 days from 45 days[159] Challenges and Opportunities - The economic conditions in Greater China remain challenging, leading to a continued weaker performance in this key market, with a profit decline of HK$41 million from Mainland China[86] - The offline business faced significant challenges, with a notable decline in sales due to high-aged inventory and diminished brand perception, leading to a reported loss for the year in Mainland China[105][107] - The company recognizes the importance of creating long-term value for shareholders as a top priority, supported by a dedicated team and strategic vision[26] - The company aims to enhance its e-commerce channel as online penetration across all markets is below industry norms[175] Employee Development - The company is committed to investing in staff development through various training programs to enhance skills and knowledge[179] - The company has approximately 6,627 employees as of December 31, 2024, and offers competitive remuneration and training programs to maintain a skilled workforce[196] - The average age of the management team is 49 years, indicating a blend of experience and youthful leadership[196]