Chow Tai Fook Jewellery Group Posts 37.7% Growth in Core Operating Profit to HK$5,989 Million For 1HFY2024 Led By Positive Impact From Ongoing Transformation

HONG KONG, CHINA / ACCESSWIRE / November 23, 2023 /

Foto: Accesswire

Chow Tai Fook Jewellery Group announces FY2024 interim results

Results Highlights

• In transition to higher value growth, we are focusing our efforts and making significant strides towards executing our five strategic priorities as part of the transformation journey: brand revamp, product optimisation, accelerated digitalisation, operational efficiency and talent cultivation.
• Notable progress in rationalising our product portfolio and optimising the product planning process. During the period, we successfully launched new designs of
  HUÁ Collection and our HEARTS ON FIRE brand launched its VELA Collection.
• Improvement in mobility and retail activity in our key markets during the first half of FY2024 ("1HFY2024") drove a 6.4% year-on-year increase in revenue to HK$49,526 million. The growth would amount to 11.3% on a constant exchange rate basis. In Hong Kong, Macau and other markets, revenue grew 57.7% during the period due to improved inbound tourism with the progressive return of Mainland tourists.
• Core operating profit increased 37.7% to HK$5,989 million, outpacing revenue growth. This was led by ongoing efforts in optimised pricing strategy and operational efficiency enhancement, coupled with the benefits from gold price surge. On a constant exchange rate basis, it was up 44.3% YoY.
• In line with our commitment to enhancing earnings quality, adjusted gross profit margin improved 140 basis points year-on-year to 23.8% while the core operating profit margin expanded by 280 basis points to 12.1% in the period. This validates our clear focus towards higher value growth and delivering sustainable long-term stakeholder value creation as we chart steady progress in our transition.

Financial Summary For the six months ended 30 September	2023 HK$ million	2022 HK$ million	YoY Change
Revenue	49,526	46,535	+6.4%
Gross profit	12,344