Best Mart 360 Holdings Limited Announces FY2021/22 Annual Results; Core Net profit Surged Significantly by 121.0% YoY; Proposed a final dividend of HK$8.0 cents per share
- Revenue increased by 21.8% to approximately HK$1,983.5million.
- Gross profit increased by 28.4% to approximately HK$667.7 million.
- Operating profit increased by 39.2% to approximately HK$141.5 million.
- Profit attributable to owners of the Company increased by 34.8% to approximately HK$109.8 million, if excluding the government subsidies of approximately HK$31.8 million, core net profit increased significantly by 121.0% YOY.
- As at 31 March 2022, the Group operated a total of 138 chain retail stores, including 130 retail stores in Hong Kong, 6 retail stores in Macau and 2 retail stores in Mainland China.
- Launched an aggregate of around 70 private label products, from which sales increased by 130.2% YOY.
- Strategically expands product range to cover more basic foodstuffs and necessities and enhance the development of private label products in the time of fighting against pandemic.
- Launched “FoodVille”, a new global gourmet brand and executed the expansion plan in the Greater Bay Area by setting up the first presence in the Mainland China market in Shenzhen.
- Basic earnings per share was 11.0 cents. The Board recommended the payment of final dividend of HK$8.0 cents per share.
| || For the year ended 31 Mar |
| HK$’000 || 2022 || 2021 || Change |
| Revenue || 1,983,526 || 1,627,891 || +21.8% |
| Gross profit || 667,654 || 520,154 || +28.4% |
| Gross profit margin || 33.7% || 32.0% || +1.7 p.pt. |
| Operating profit || 141,493 || 101,668 || +39.2% |
| Profit attributable to owners of the Company || 109,804 || 81,449 || +34.8% |
| Profit attributable to owners of the Company (excluding government subsidies) || |
| Basic earnings per share (HK cents) || 11.0 || 8.1 || +35.8% |
HONG KONG SAR - Media OutReach - 24 June 2022 - Best Mart 360 Holdings Limited (“Best Mart 360” or the “Company”, together with its subsidiaries, the “Group”; stock code: 2360.HK), a leisure food retailer in Hong Kong, announced its annual results for the year ended 31 March 2022 (“Financial Year”). During the Financial Year under review, the revenue recorded by the Group amounted to approximately HK$1,983,526,000, representing an increase of approximately 21.8%. During the Year, the Group recorded a 7.3% growth in same store sales performance (2021: approximately 10.1% increase).
During the Financial Year under review, gross profit for the year ended 31 March 2022 was approximately HK$667,654,000 (2021: approximately HK$520,154,000). Gross profit margin of the Group was approximately 33.7% (2021: 32.0%). Profit attributable to owners of the Company was approximately HK$109,804,000 (2021: approximately HK$81,449,000), representing an increase of approximately 34.8%, if excluding the government subsidies of approximately HK$31,772,000, core net profit increased significantly by 121%. The increase was mainly attributable to the substantial increase in the overall sales of the Group’s retail stores as compared to the corresponding period last year.
During the Financial Year under review, basic earnings per share was 11.0 cents (2021: 8.1 cents). The Board recommended the payment of final dividend of HK$8.0 cents per share.
Moderate expansion pace & expand footprint in residential areas
As at 31 March 2022, the Group operated a total of 138 chain retail stores, including 130 chain retail stores in Hong Kong (as at 31 March 2021: 120), six chain retail stores in Macau (as at 31 March 2021: four) and two chain retail stores in Mainland China (as at 31 March 2021: nil).
Rental expense for retail stores in Hong Kong and Macau was approximately HK$212,136,000 for the year ended 31 March 2022, representing an increase of approximately 12.6% as compared with approximately HK$188,393,000 for the year ended 31 March 2021. The ratio of rental expense to sales revenue of retail stores was approximately 10.7%, which was lower than that of approximately 11.6% for the year ended 31 March 2021.
Strategically adjusted product structure & kept enhancing the development of private label products
During the Financial Year under Review, the Group continued its global procurement policy and mission by sourcing a broad spectrum of products worldwide to meet and satisfy market trend and demand. To better cater to the daily needs of the local community in fighting against the pandemic, the Group further strengthened the supply of basic foodstuffs such as cereals, noodles, canned food, milk, frozen and chilled food, daily necessities and basic groceries, as well as anti-epidemic supplies, such as face masks, to better meet the daily needs of consumers in the local community. In addition, the Group continued to enhance the sale of its private labels in retail stores, including nuts and dried fruits, organic cereals, wet tissues, canned food, biscuit and snacks and other products, offering consumers a more diversified range of selections.
For the year ended 31 March 2022, the Group procured quality products from overseas suppliers and brand owners or importers in Hong Kong and sold a total of approximately 3,560 SKUs of products (for the year ended 31 March 2021: 3,600 SKUs), such origins were mainly from Japan and Korea; America and Australia; Vietnam and Thailand; and China, Taiwan, and Hong Kong. The Group sourced the most popular and trendy food products from each country, offering a diverse, multi-brand and multi-category selection worldwide for every customer.
During the Financial Year under Review, the Group continued to actively develop private label products that on the one hand allowed the Group to capture the pricing opportunities and exercise higher level of quality control on its products and on the other hand further uplifted the Group’s brand awareness and strengthened customers’ loyalty. For the year ended 31 March 2022, sales derived from private label products was approximately HK$323,556,000 (for the year ended 31 March 2021: approximately HK$140,564,000), representing a significant increase of approximately 130.2% from that of last Financial Year and accounted for approximately 16.3% of the revenue of the Group for the year ended 31 March 2022 (for the year ended 31 March 2021: approximately 8.6%). During the Financial Year under Review, the Group has launched approximately 70 private label products, including personal care and anti-epidemic products, nuts and dried fruits, cereals, Chinese foodstuffs, etc.
Strengthened marketing strategy & broadened the customer base
Given that the retail business of the Group is a consumer-driven business, the Group placed substantial efforts in developing and reinforcing its customer base. Accordingly, the Group established a membership scheme since April 2015 in order to promote consumer loyalty, stimulate sales and expand customer base. In order to further deepen customer stickiness and expand customers’ coverage, the Group used big data analysis and reformulated its marketing strategy to launch a new three-tier membership scheme and a second-generation mobile app in mid-June 2020. The new membership scheme helps to elevate brand positioning and market recognition, and the membership rewards have been fully optimised and enhanced, with more member benefits such as multiple items purchase stamp reward, special offers for selected products and access to latest market information. Through diversified marketing strategies, the Group aims to internally strengthen the membership core from within and attract new customers through external expansion, so as to effectively and purposefully foster the ties between members and the Group, thereby driving recurring business from members and promoting sustainable growth of the Group’s business.
During the Financial Year under Review, the number of the Group’s members increased from approximately 1,673,000 as at 31 March 2021 to approximately 1,861,000 as at 31 March 2022, representing an increase of approximately 11.3%. Since the launch of the mobile app in March 2019, over 740,000 people have registered as members through the Group’s mobile app as of 31 March 2022.
The Group will continue to strengthen its core competitiveness in the Hong Kong market by optimising its product mix to cover more basic foodstuffs and necessities and enhancing the development of its private label products, in order to cater to the needs of the local market. The Group will also actively seek for more quality supply channels and control costs and product quality, in order to provide products with better value to customers. The Group will continue to adhere to the objective of global procurement, and remain truthful to the business philosophy of offering the “Best Quality” and “Best Price”. The management will continue to monitor the development in external environment and review the geographical distribution of the Group’s stores. The Group will actively identify suitable locations in Hong Kong to expand the sales network of “Best Mart 360º” and “FoodVille” branded store. Existing stores will also undergo internal enhancement to optimise product display space and provide a more comfortable shopping environment for customers.
The Group plans to strengthen its marketing strategy. A brand-new Best Mart 360 website was launched in May 2022. In addition to providing more information on product promotions and food and lifestyle tips in the “Blog” section, the website also features a new page on “Corporate Responsibility” to share the Group’s experience of participating in charitable activities, allowing customers to better understand Best Mart 360’s faith in believing that “Nothing is impossible. Believe we can do it”, bringing the Group closer to the public, and reinforcing the positive image of the brand. Furthermore, the Group will also try using different channels to strengthen its promotion activities in order to introduce the brand or products to customers with an aim to attract more customers of different segments.
On the membership front, the Group has established a membership scheme since April 2015, which offers exclusive member benefits and privileges on a regular basis to enhance customer loyalty. To further enhance the brand image, the Group will optimise the membership scheme to increase the number of members and broaden the customer base, such optimisation includes reviewing the membership scheme in a timely manner, streamlining the membership registration and enrolment process, and adding more membership points redemption programs, etc.
The Group executed its expansion plan in the Greater Bay Area by setting up its first presence in the Mainland China market in Shenzhen. The Group will actively explore successful and profitable models and apply them to other cities within the Greater Bay Area to accelerate its development into the Greater Bay Area and extend its sales network to the whole nation. During the year, the Group has successfully expanded its business model to the Macau market, and has achieved satisfactory operating results. In the future, the Group will continue to implement its expansion plan in Macau, and continue to identify suitable locations in the region with reference to the geographical location, size and layout of the stores as in line with its expansion strategy, laying the foundation for the Group’s vision of moving beyond the Hong Kong market.
Mr. Hui Chi Kwan, Chief Executive Officer of the Group, said, “Despite the business environment of the retail industry remains uncertain with the recurrence of the novel coronavirus outbreak, the Group managed to maintain sustainable growth in both revenue and profit. During the year, we have successfully expanded the business model to Mainland China and Macau market, laying the foundation of our expansion plan in the Greater Bay Area. Looking ahead, we will closely monitor market changes and take quick and appropriate measures to enhance the business operational effectiveness of the Group. We will continue to strengthen the Group’s core competitiveness by optimising product mix and enhancing the development of private label products in order to cater to the needs of the local market, creating better results for the Group and bring satisfactory returns to the shareholders.”
About Best Mart 360 Holdings Limited
Best Mart 360 Holdings Limited operates chain retail stores under the brand “Best Mart 360”, offering wide selection of imported and pre-packaged leisure foods and other grocery products principally from overseas. It is the Group’s business objective to offer “Best Quality” and “Best Price” products to customers through continuous efforts on global procurement with a mission to provide comfortable shopping environment and pleasurable shopping experience to customers. As at 31 March 2022, the Group operated a total of 138 chain retail stores, spanning all of the 18 districts in Hong Kong and strategic locations with heavy pedestrian flow in Macau and Shenzhen. Among the chain retail stores, the global gourmet brand “FoodVille” launched in September 2021 is also included, targeting the medium-to-high-end-market.
The issuer is solely responsible for the content of this announcement.