The Chow Tai Fook Jewellery Group Limited announced its annual results for the fiscal year ended March 31,2018, reporting revenues of HK$59.16 billion ($7.54 billion) up 15.4 percent from the HK$51.25 billion ($6.53 billion) reported the previous year.
Gross profit was HK$16.21 billion ($2.07 billion) as against HK$14.96 billion ($1.91 billion) in fiscal 2017, and due to the encouraging business performance and operating leverage, core operating profit surged by 20.6 percent to HK$5.61 billion ($714.54 million) from fiscal 2017’s HK$4.65 billion ($592.57 million).
The company said that fiscal 2018 was a year of recovery with encouraging development. It added that the retail market in greater China has regained its upward momentum, leading to a vibrant performance for the group.
In Mainland China and Hong Kong and Macau, same store sales growth turnaround commenced in the second half of 2017 and the recovery trend was sustained into 2018. Driven by a growth in both average selling price and volume in both markets, same store sales in Hong Kong and Macau grew at 10.2 percent and registered a stronger volume growth than Mainland China, which reported an eight percent same store sales growth.
The company opened a net 204 points of sales during the year, bringing the total to 2,585 as of March 31.
Chow Tai Fook said that while it would remain selective in store openings and focus on raising the average selling price in Tier I and II cities, market penetration in lower tier cities would be the priority. The pace of expansion will be accelerated to capitalise on the rapid urbanisation and infrastructural development in these areas.