Chow Tai Fook Predicts Recovery, Despite Revenue Dip

By John Jeffay / June 12, 2023 / www.idexonline.com / Article Link

(IDEX Online) - Chow Tai Fook, the Chinese jeweler with over 7,000 outlets, reported a drop in annual revenue and profit, but said it had still delivered a "resilient performance", in the face of "challenging macroeconomic externalities".The company said in its annual results that it was encouraged by the "gradual resumption of business in our key markets" after the end of zero-tolerance Covid lockdowns and hoped the return of tourists, together with supportive government policies, would drive its recovery.But in an interview vice-chairman Sonia Cheng said it would be slowing its expansion plans to boost profitability. She said it had opened 1,631 news stores over the last 12 months, but, according to a Bloomberg news report, it was planning to open no more than 600 to 800 in the next year.Revenue for FY2023 was down 4.3% per cent to HK$94.7bn (US$12bn) and core operating profit down 5.6 per cent to HK$9.4bn (US1.2bn).Chow Tai Fook said the Hong Kong and Macau markets showed a strong recovery in the second half, with revenue rising 8.8 per cent thanks to pent-up bridal demand and the relaxation of social distancing measures."FY2024 is expected to be a year of recovery and normality with sustained improvements to operational and financial performances," the company said."This builds on the positive impact delivered by the five strategic priorities in 2HFY23, to strengthen competitiveness, enhance quality of earnings and drive sustainable long-term stakeholder value creation."

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