2022.06.23
Pico Far East Holdings Limited announces 2022 Interim Results

Financial Highlights 

  • Revenue increased by 25.0% to HK$2,344.7 million
  • Gross profit increased by 19.6% to HK$641.2 million
  • Profit attributable to owners of the Company increased by 19.8% to HK$68.9 million
  • The Board does not recommend payment of an interim dividend as part of the prudent and responsible measures to preserve a healthy medium- to long-term financial position for sustaining operations

Financial Summary

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

2022

2021

Change

Revenue

2,344.7

1,875.8

+25.0%

Gross profit

641.2

536.3

+19.6%

Gross profit margin (%)

27.3%

28.6%

-1.3ppts

Profit from core operations

80.7

92.1

-12.4%

*EBITDA

 123.6

118.4

+4.4%

Profit attributable to owners of the Company

 68.9

57.5

+19.8%

Net profit margin (%)

2.9%

3.1%

-0.2ppt

Basic earnings per share

HK5.56 cents

HK4.65 cents

+19.6%

Interim dividend per share (recommended)

Nil

Nil

N/A

*Before a change in remeasurement of contingent consideration 

(Hong Kong, 23 June 2022) 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 2022 interim results for the 6 months ended 30 April 2022.

Profit from core operations was HK$80.7 million (2021: HK$92.1 million), a 12.4% decrease compared with the previous corresponding period. Profit attributable to owners of the Company was HK$68.9 million (2021: HK$57.5 million), a 19.8% increase compared with the previous corresponding period.

Basic earnings per share was HK5.56 cents, compared to HK4.65 cents in the previous corresponding period.

Though some markets are transitioning to endemicity in relation to COVID-19, uncertainties stemming from the pandemic and geopolitical tensions continue to be of concern. As such, 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 (2021: nil).

Halfway into 2022, the global economy continues to face multiple new and recurring challenges.

Last year, China was the early leader in the reinvigoration of the meetings, incentives, conventions and exhibitions (MICE) industry, with face-to-face marketing activities resuming and many popular annual or biennial events announcing their full-scale return in 2022. However, from January 2022, COVID surges in major cities including Hong Kong, Shenzhen, Shanghai and Beijing led to tightened curbs and lockdowns, resulting in the postponement or cancellation of many local and international events and exhibitions in China. This had a negative impact on the Group’s recovery in the first half of this financial year.

However, the impact was partially mitigated by the return of events and exhibitions in other parts of the world where the Group operates. The beginning of 2022 saw many Asian and MENA countries as well as the USA start to loosen or lift various restrictions. Physical events on a smaller scale, supplemented by digital and hybrid activities, have correspondingly seen a gradual return as borders reopen.

The Group’s operating margin declined slightly due to a tightening labour market, ongoing supply chain issues and inflation, leading to higher operational costs. In recovering markets, the Group has pursued aggressive sales strategies to capture larger market shares.

Despite facing a variety of challenges, the Group’s diversified geographical presence and the successful transformation of its businesses across physical, digital and integrated event formats enabled the Group to remain resilient and profitable while capturing a growing share of a recovering market.

Operations Review

By business segment

For the 6 months ended 30 April

2022

2021

Change
in Revenue

Revenue
(HK$’ million)

% to
Group’s Revenue

Revenue
(HK$’ million)

% to
Group’s Revenue

Exhibition, Event and Brand Activation

 1,914 81.6% 1,431 76.2% +33.8%

Visual Branding Activation

 193 8.2% 200 10.7% -3.5%

Museum and Themed Entertainment

 210 9.0% 228 12.2% -7.9%

Meeting Architecture Activation

 28 1.2% 17 0.9% +64.7%

 

 By geographical region For the 6 months ended 30 April
2022 2021 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)

 1,185 50.6% 1,133 60.4% +4.6%

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

 331 14.1% 253 13.5% +30.8%

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

 422 18.0% 274 14.6% +54.0%
UK and US  352 15.0% 179 9.5% +96.6%
Others  55 2.3% 37 2.0% +48.6%

 

Outlook

According to International Monetary Fund’s World Economic Outlook findings in April 2022, global growth is projected to slow from an estimated 6.1% in 2021 to 3.6% in 2022-23. Though the world is slowly recovering from the impact of COVID, the outlook has dampened due to geopolitical tensions and pandemic-related uncertainties in China. Facing a difficult and uncertain market, the Group do not expect a ‘V-shaped recovery’ in the foreseeable future.

In the second half of 2022, the Group will continue to follow its ‘Experience-led, Digital-First’ and ‘Content Creation and Community-Building’ strategies to better meet client needs. The Group has secured several contracts for delivery in the second half of 2022, from both new and recurring clients. Although the Group expect a cautious recovery from the market, the Group is confident in its ability to adapt to market changes and sustain growth while cautiously managing its cost and financial resources.

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


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