INTERIM RESULTS 2016

Transcription

1 Trinity Limitedit Stck Cde: August

2 Brand Activities Intrductin Cutting Our Clth T Suit Cnditins Highly efficient e stre netwrk Fcus n cre Chinese cnsumers Re-engineering cmpany and supply chain Refcused and leaner management team Build n British and Eurpean brand heritage 2

3 Brand Activities Agenda Market Cmpany Results Pririties Brands Outlk 3

4 Driving revenue Market Subdued spending envirnment in Greater China cntinues Decline in visitrs it t Hng Kng and Macau, as well as reduced d luxury spending in these markets Turism arrivals frm the Chinese Mainland t Hng Kng, saw a significant drp f 11% Widespread discunting acrss the industry Current market cnditins expected t cntinue 4

5 Driving revenue Cmpany Clsure f nn-perfrming stres Restructuring f supply chain netwrk Clsure f casual wear prductin line in Hng Kng (Rerganisatin csts f HK$22.8 millin) Appintment f new CEO 5

6 Results fr 1H

7 Results Financials HK$ millin 1H 1H vs 15 Variance Revenue ,006.4 (115.6) (11.5%) Grss Prfit (104.6) (14.7%) Grss margin 68.1% 70.7% 7% (2.6 pp) Cre Operating Prfit/(Lss) (169.9) (118.0) (51.9) (44.0%) Operating margin -19.1% 1% -11.7% (7.4 pp) Revenue was mainly impacted by the dampened cnsumer sentiment in Greater China Grss margin fr the retail business remained stable at 70.1%, but verall margins fr the Grup were impacted by a change in the whlesale/ retail mix Cre perating prfit reprted fr the first time befre nn-peratinal items, etc. 7

8 Results Net Prfit Analysis HK$ millin 1H 1H 2015 Cre Operating Prfit/(Lss) (169.9) (118.0) Gain n Remeasurement f Cntingent Purchase Cnsideratin Payable fr Acquisitin Rerganisatin Csts (22.8) - Net Finance Csts and Others (8.5) (2.8) Incme Tax Lss Attributable t Sharehlders (200.4) (47.4) HK$50.0 millin gain in 2015 frm the Remeasurement f Cntingent Purchase Cnsideratin Payable fr Acquisitin f Gieves & Hawkes, did nt recur this year Rerganisatin csts f HK$22.8 millin due t clsure f casual wear prductin line Reductin f incme tax credit f HK$22.6 millin 8

9 Results Sales Analysis HK$ millin Ttal Sales Change in Ttal Sales 1H 1H 2015 HK$ Lcal Currency Retail Chinese Mainland (23.1%) (19.5%) Hng Kng & Macau (13.0%) (13.0%) Taiwan (17.8%) (14.2%) Rest f the Wrld (12.1%) 1%) (7.5%) Retail Subttal (18.7%) (16.0%) Whlesale and Licensing % 109.3% Grup Ttal ,006.4 (11.5%) (8.7%) Change in Same Stre Sales HK$ Lcal Currency (16.3%) (12.4%) (11.9%) (11.9%) (18.1%) (14.5%) (8.3%) (3.1%) (14.2%) (11.6%) 9

10 Results Stre Netwrk 30 Jun Dec Jun Dec Chinese Mainland Hng Kng & Macau Taiwan Others Ttal Clsure f nn-perfrming stres t drive netwrk efficiency Fur Hardy Amies UK stres added 10

11 Results Inventry 30 Jun 31 Dec Jun 2015 Inventry Turnver Days (days) Inventry Amunt (HK$ millin) Inventry turnver days and ttal dllar value are dwn since the end f last year, but up marginally since the last year Inventry level will be a cre fcus fr the Grup ging frward 11

12 Results Headcunt 30 Jun Dec Jun Dec Ttal 2,665 2,738 2,951 3,330 Significant headcunt reductin (665 persnnel) ver past 18 mnths Clsure f casual wear prductin line (134 persnnel) at Hng Kng factry Reductin in senir management psitins 12

13 Results Gearing Rati 30 Jun 31 Dec Jun 2015 Net Debt (HK$ millin) Gearing Rati 18.5% 13.3% 9.1% Gearing rati increased due t first half lss, but remains mderate Definitin f gearing g rati: net debt divided by ttal capital (ttal equity plus net debt) 13

14 Pririties

15 Pririties Re-engineering g Imprve rganisatinal efficiency Reduce the cst base Optimise supply chain 15

16 Pririties Imprve Organisatinal Efficiency Challenge: Ensure clear management respnsibilities Actin: Streamline senir management team Clear brand leadership, centered arund the DNA f ur brands in Eurpe Experienced leadership managing the supply chain 16

17 Pririties Imprve Organisatinal Efficiency Brands Supply Chain Asia Retail Laurent Ray Clacher Grsggeat Danny Lau Michelle Ng Agnes Shen Chinese Mainland, Singapre Hng Kng, Macau, Taiwan 17

18 Pririties Reduce Cst Base Challenge: High cst base Actin: Onging restructuring recent reductin in senir management and cnsultant headcunt Tight cst cntrl Cntinued review f stres with negative cntributin 18

19 Pririties Optimise Supply ppy Chain Challenge: Fcus n timely delivery Actin: Chief Operating Officer has been refcused t versee all supply chain activities Supply Chain Taskfrce created t identify imprvement areas and truble sht issues Rapid Respnse Team t shrten the prduct develpment and delivery cycle Inventry clearance via discunting, utlet activity and nline channels 19

20 Driving Revenue Thrugh Brands

21 Driving revenue Kent & Curwen x David Beckham SS17 Cllectin 21

22 Driving revenue Jasn Basmajian and Tng Dawei at 2017 Fashin Week, Paris 22

23 Driving revenue Hu Bing at flagship stre, N 1 Savile Rw 23

24 Brand Activities Outlk Lng term utlk fr ur cre Chinese cnsumers is psitive Extensive stre netwrk acrss Greater China New management team with strng industry experience Explre pprtunities including licensing and e-cmmerce fcus Well psitined when the market recvers 24

25 Thank yu