Financial Highlights
- Record-high revenue increased by 16.4% to HK$4,631 million
- Profit from core operations increased by 1.8% to HK$366 million
- EBITDA increased by 4.3% to HK$438 million
- Full year dividend of HK13.5 cents; Dividend payout ratio is 61.3%
- Basic earnings per share HK22.01 cents
|
Financial Summary |
For the 12 months ended 31 October (HK$'000) |
||
|
2018 |
2017 |
Change |
|
|
Revenue |
4,631,350 |
3,978,751 |
+16.4% |
|
Gross profit |
1,416,105 |
1,245,023 |
+13.7% |
|
Gross profit margin (%) |
30.6% |
31.3% |
-0.7 ppt |
|
*Profit from core operations |
366,105 |
359,640 |
+1.8% |
|
Profit attributable to owners of the Company |
271,508 |
281,439 |
-3.5% |
|
Net profit margin (%) |
5.9% |
7.1% |
-1.2ppts |
|
*EBITDA |
438,278 |
420,411 |
+4.3% |
|
Basic earnings per share |
HK22.01 cents |
HK22.92 cents |
-4.0% |
|
Final dividend per share (recommended) |
HK9.0 cents |
HK9.0 cents |
- |
|
Full year dividend |
HK13.5 cents |
HK18.5 cents |
-27.0% |
*Before change in remeasurement of contingent consideration
(Hong Kong, 28 January 2019) Pico Far East Holdings Limited (“Pico”, “the Company” or “the Group”, HKEx: 752), a leading global Total Brand Activation company, today announced its 2018 annual results for the 12 months ended 31 October 2018.
During the year under review, the Group saw record-high revenue of HK$4,631 million (2017: HK$3,979 million), representing an increase of 16.4% comparing to the same period last year. This revenue growth can be attributed to the effectiveness of the Pico+ strategies which delivered impressive results for global clients. These strategies successfully mitigated the knock-on effects created by the rising global trade tensions and tightening financial conditions present throughout the year.
Profit for the year attributable to owners of the Company decreased by 3.5% to HK$ 271.5 million (2017: HK$281.4 million). Core operating margin was 7.9% (2017: 9.0%), and the decrease in core operating margin was due to the higher overhead costs inherent in making investment in human resources, technologies and systems to effectively run the Pico+ strategies and other industry-leading initiatives like Pico X.
The Directors recommend the payment of a final dividend of HK9.0 cents per ordinary share (2017:
a final dividend of HK9.0 cents and a special dividend of HK5.0 cents). Together with an interim dividend of HK4.5 cents (2017: HK4.5 cents) per ordinary share, the total dividend for the year amounts to HK13.5 cents (2017: HK18.5 cents) per ordinary share, representing 61.3% of this year’s basic earnings per share of HK22.01 cents (2017: HK22.92 cents).
Business Review
|
Revenue by segment |
For the 12 months ended 31 October |
||||
|
2018 |
2017 |
Change in Revenue |
|||
|
HK$’ Million |
% to Group’s Revenue |
HK$’ Million |
% to Group’s Revenue |
||
|
Exhibition and Event Marketing Services |
3,818 |
82.4% |
3,189 |
80.1% |
+19.7% |
|
Visual Branding Experiences |
368 |
7.9% |
348 |
8.8% |
+5.7% |
|
Museum, Themed Environment, Interior & Retail |
359 |
7.8% |
297 |
7.5% |
+20.9% |
|
Conference and Show Management |
86 |
1.9% |
145 |
3.6% |
-40.7% |
| Revenue by region | For the 12 months ended 31 October | |||
| 2018 | 2017 | |||
| HK$’ Million | % to Group’s Revenue | HK$’ Million | % to Group’s Revenue | |
|
Greater China (Hong Kong, Macau, Taiwan and the PRC) |
2,736 | 59.1% | 2,481 | 62.4% |
|
South and Southeast Asia (India, Malaysia, the Philippines, Singapore and Vietnam) |
1,123 | 24.2% | 964 | 24.2% |
|
Middle East (Bahrain, Qatar, and United Arab Emirates) |
287 | 6.2% | 230 | 5.8% |
| UK and US | 285 | 6.2% | 57 | 1.4% |
| Others | 200 | 4.3% | 247 | 6.2% |
| TOTAL | 4,631 | 100% | 3,979 | 100% |
Outlook
The solid growth the Group has experienced over the past few years pays testimony to its vision of transforming the business model ahead of competition and in advance of any changes to the market. In both profitable times and lean times, the Group continuously initiates forward-looking and proactive strategies and implement client base diversification across all business segments to make the Group less vulnerable to the cyclical nature of its business.
The Pico+ strategies are successfully broadening the Group’s revenue stream. The new Pico X strategies and the Group’s on-going digital transformation should enable the Group to capture the emerging opportunities presented by Generation Z and generate sustained growth in the years to come.
According to The World Bank’s latest report, released in early January 2019, the global economic growth outlook for 2019 has dimmed and tightening financial conditions could trigger a downturn. We believe that with the new strategies being implemented by Pico, such as the acquisitions Pico is making in the US and elsewhere, will strengthen our capabilities for continued growth.
Full announcement is available at: https://www.pico.com/en/investor/company-announcement
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