2021.06.24
Pico Far East Holdings Limited announces 2021 Interim Results

Financial Highlights 

  • Revenue increased by 0.4% to HK$1,876 million
  • Profit from core operations increased by 9.3% to HK$92.1 million
  • Gross profit decreased by 13.0% to HK$536.3 million
  • Profit attributable to owners of the Company increased by 138.6% to HK$58 million
  • The Board does not recommend payment of an interim dividend as part of the prudent measures to preserve a healthy financial position for sustaining operations

Financial Summary

For the 6 months ended 30 April
(HK$' Million)

2021

2020

Change

Revenue

1,875.8

1,868.0

+0.4%

Gross profit

536.3

616.1

-13.0%

Gross profit margin (%)

28.6%

33.0%

-4.4ppts

Profit from core operations

92.1

84.3

+9.3%

*EBITDA

118.4

113.6

+4.2%

Profit attributable to owners of the Company

57.5

24.1

+138.6%

Net profit margin (%)

3.1%

1.3%

+1.8ppts

Basic earnings per share

HK4.65cents

HK1.95 cents

+138.5%

Interim dividend per share (recommended)

Nil

Nil

N/A

*Before a change in remeasurement of contingent consideration 

(Hong Kong, 24 June 2021) Pico Far East Holdings Limited (‘Pico’, ‘the Company’ or ‘the Group’, Stock code: 752.HK), a leading global total brand activation company, today announced its 2021 interim results for the six months ended 30 April 2021.

The year 2021 continues to be challenging, with recovery from the pandemic largely slow-paced. However, the Group has embraced the challenges with its new business model coupled with the redesigning and rightsizing measures adopted last year.

Thanks to its strong presence in China, the Group continues to decisively capture opportunities emerging from the ongoing return of physical exhibitions and events starting in the second half of 2020. During the period, the Company implemented ambitious strategies to capture a larger share of the recovering market in China in order to compensate for weaker business in other regions. Consequently, this has led to a decrease in gross profit margin compared to last year.

In other regions where the pandemic has not yet been contained, virtual and digital solutions remained the Group’s key offering during the period under review. The promising demand for these events enabled the Group to partially offset the loss of physical events in these regions.

Following the successful repositioning in the digital and brand activation spaces, a number of clients who previously engaged Pico annually for face-to-face events turned to them for online events with an increased quarterly, monthly or even ongoing frequency.

After a year of extensive cost saving and rightsizing measures, the Group’s fixed overhead has been reduced significantly. More stringent credit controls and cash preservation measures were also put in place to maintain its healthy financial position.

Group revenue for the six months ended April 30, 2021 remained stable at HK$1,876 million (2020: HK$1,868 million), a 0.4% increase compared with the previous corresponding period.

Profit from core operations was HK$92.1 million (2020: HK$84.3 million), a 9.3% increase compared with the previous corresponding period. Profit attributable to owners of the Company was HK$58 million (2020: HK$24 million).

Basic earnings per share is HK4.65 cents, compared to HK1.95 cents in the previous corresponding period.

As a definite end to the COVID-19 pandemic remains uncertain, the Group will continue to take prudent and responsible measures to preserve a healthy medium- to long-term financial position for sustaining operations. As a result, the Board does not recommend payment of an interim dividend (2020: nil).

Operations Review

By business segment

For the 6 months ended 30 April

2021

2020

Change
in Revenue

Revenue
(HK$’ million)

% to
Group’s Revenue

Revenue
(HK$’ million)

% to
Group’s Revenue

Exhibition, Event and Brand Activation

1,431  76.2%  1,481 79.3% -3.4%

Visual Branding Activation

200  10.7% 160
(restated*) 
8.6% +25.0%

Museum and Themed Entertainment
(formerly Museum, Themed Environment, Interior and Retail)

228  12.2% 197
(restated*) 
10.5% +15.7%

Meeting Architecture Activation

17  0.9%  30 1.6% -43.3%
TOTAL 1,876  100% 1,868 100% +0.4%

 *In the period ended April 30, 2021, the Group reorganised the presentation of Visual Branding Activation and Museum and Themed Entertainment businesses based on the management of strategic business units. The comparative figures have been restated accordingly.

 By geographical region For the 6 months ended 30 April
2021 2020 Change
in Revenue
Revenue
(HK$’ million)
% to
Group’s Revenue
Revenue
(HK$’ million)
% to
Group’s Revenue

Greater China
(Mainland China, Hong Kong, Macau and Taiwan)

1,133  60.4% 802 43.0% +41.3%

Southeast Asia
(Malaysia, the Philippines, Singapore and Vietnam)

253  13.5% 404 21.6% -37.4%

Middle East
(Bahrain, Oman, Qatar, Saudi Arabia and the UAE)

274  14.6% 302 16.2% -9.3%
UK and US 179  9.5% 279 14.9% -35.8%
Others 37  2.0% 81 4.3% -54.3%
TOTAL 1,876  100% 1,868 100% +0.4%

 

Outlook

Though a global economic recovery is in sight, the Group expects that 2021 will continue to be a challenging year due to the pandemic-related lockdowns and travel restrictions that remain in many of the markets in which the Group operates.

Since China’s reopening last year, many events have not only resumed, but grown, thanks to strong consumer spending supported by the government’s economic stimulus. The ‘Digital China’ policy unveiled in the latest government directive under the 14th Five-Year Plan is creating further opportunities for the Group in digital activations for events and exhibitions as well as intelligent stores, showrooms and experience centres. The Group is well prepared to take advantage of these new opportunities.

The Group is cautiously optimistic that more countries will gradually reopen, but will continue to take prudent cost control measures to minimise the downside risk.

Pico’s ‘Reimagine, Reinvigorate and Reinvent’ strategy, supported by continuous investment in digital enablement capabilities, will enable the Group to quickly resume its customary trajectory of growth as the world reopens after the COVID-19 pandemic. The Group’s five decades of continuous transformation is itself the competitive advantage that enables it to be innovative and agile in a rapidly changing environment.

Full announcement is available at: https://www.pico.com/en/investors?#company-announcement


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