Group Achieves Record-breaking Revenue Amid Global Uncertainty

Financial Highlights

• Revenue increased by 18.8% to HK$6,327.0 million
• Gross profit increased by 22.1% to HK$1,942.1 million; Gross profit margin was 30.7%
• Profit attributable to owners of the Company increased by 56.8% to HK$357.6 million
• Recommended final dividend of HK 7.5 cents, and a special dividend of HK 3.5 cents; Full year dividend of HK 16.5 cents; Dividend payout ratio was 57.2%
• Basic earnings per share of HK 28.84 cents

*Before a change in remeasurement of contingent consideration 

(Hong Kong, 24 January 2025) 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 2024 annual results for the 12 months ended 31 October 2024.

During the financial year under review, the Group reported total revenue of HK$6,327 million (2023: HK$5,328 million), representing an 18.8% increase on a year-over-year basis.

Earnings before interest, taxes, depreciation, amortisation and a change in remeasurement of contingent consideration (“EBITDA”) was HK$564.4 million (2023: HK$437.4 million), representing a 29.0% increase on a year-over-year basis. 

Profit from core operations was HK$499.4 million (2023: HK$360.0 million), representing a 38.7% increase on a year-over-year basis.

Profit attributable to owners of the Company was HK$357.6 million (2023: HK$228.1 million), representing a 56.8% increase on a year-over-year basis.

The Board recommends payment of a final dividend of HK7.5 cents (“Final Dividend”) (2023: a final dividend of HK7.0 cents), and a special dividend (“Special Dividend”, together with the Final Dividend, “Dividends”) of HK3.5 cents (2023: a special dividend of nil), per ordinary share. Together with an interim dividend of HK5.5 cents (2023: HK2.0 cents) per ordinary share, the total dividend for the year ended October 31, 2024 amounts to HK16.5 cents (2023: HK9.0 cents) per ordinary share. 

As of October 31, 2024, the Group employed some 2,700 full-time staff and operated across 36 cities in 22 countries globally. Pico is a Total Brand Activation agency utilising Content, Community, Creative and Data strategy to create an Integrated Brand Experience for client’s marketing events around the world.

The global market has shown remarkable resilience over the past year. However, the Group continues to operate in a very complex world; rising geopolitical tensions in general are testing its resilience and existing growth strategies as a global organisation. Geopolitical conflicts in Europe and the Middle East and escalating US-China trade tension have resulted in a decline in global trade cooperation causing the world to move from global to a geopolitically aligned trade. As US-China trade has declined, the Middle East and countries such as South Korea, Thailand and Vietnam have emerged as major beneficiaries. Consequently, many of the Group’s regional offices have experienced an increase in business volume, particularly those in Southeast Asia and the Middle East. Also, the Group has responded to these changes by assisting many brands – particularly Chinese brands – to expand overseas into these new or developing markets.

Overall, the Group continues to solidify its position as a global leader in Total Brand Activation by employing its Content, Community, Creative and Data strategies to deliver its Integrated Brand Experience. The Group’s expertise allows it to deliver event marketing which integrates a broad range of channels, platforms and touchpoints to develop a holistic integrated experiential brand marketing campaign. With a sustained focus on retaining key accounts, maximising market share and supporting growth, Pico has continued to put major effort in nurturing its loyal and recurring client base and audience community.

During the year, the Group executed its strategic decision to dispose of its 45% equity interest in InfocommAsia Pte Ltd. in Singapore, at a valuation consistent with the terms stipulated in the join-venture agreement. This profitable divestment should enable it to redirect resources and management focus towards core business activities. Proceeds from the transaction will provide liquidity and capital that can be allocated to strategic Initiatives.

In the USA, effective delivery of its Integrated Brand Experience has not only allowed the Group to strengthen existing client collaborations but transform its US business from creating bespoke experiential marketing to creating award winning, industry-changing brand campaigns. Its proven ability to create brand campaigns that resonate with audiences across a variety of demographics and regions has helped the Group to foster robust long-term partnerships with clients.

On May 31, 2024, the Group strategically acquired the remaining 40% stake of Infinity Marketing Team, LLC (“IMT”), allowing it to achieve full ownership. Based in California, IMT is a valuable addition to the Group’s portfolio, bringing a highly regarded range of marketing, event management and promotional service expertise. Full ownership expands the Group’s global footprint, increases the potential of developing new business and clients in the USA, and enables it to offer integrated solutions of an even more comprehensive nature across a variety of channels and touchpoints.

The Group’s commitment to sustainability, as outlined in its annual Environmental, Social and Governance (“ESG”) report, remained at the forefront of operations throughout the financial year. Pico’s activities consistently demonstrated strong commitments to environmental stewardship, employee well-being, responsible business practices and community support.

Operations Review

Outlook

The year 2025 will challenge global business, with the new US administration potentially creating new trade uncertainty that could pose new threats to the global economy and fuel a shift to geopolitically aligned trade. However, with China continuing its ‘one belt and one road’ initiative, further growth is possible globally, especially in the Southeast Asia and Middle East markets where the Group has a well-established presence.

The Group will continue its investment in its existing Content, Community, Creative and Data strategies to deliver its effective Integrated Brand Experience. This will enable it to continue its business transformation from the role of vendor to trusted advisor by offering comprehensive and creative brand experience solutions to customers.

The Group’s consistent dedication to expanding its market share and increasing project value while improving efficiency, continuing evolution and building resilience has enabled it to thrive during the past few years of geopolitical and economic uncertainty, and should continue to do so amidst the challenges of the years to come.

Crucially, the Group’s strategic outlook is based on its capacity to adapt to current and anticipated market realities. Hence its willingness to embrace technological advances, such as AI and data tools, both to enhance operational efficiency and add value to its client services. This has and will continue to set the Group apart from industry peers. Culturally, the Group fosters continued excellence by supporting an internal environment of learning, innovation, professional achievement and career advancement. Meanwhile, its careful credit control and cashflow management are intended to function together to ensure a sufficient working capital basis for robust short- and long-term operations. It will continue to focus on delivering profitable growth to the benefit of all of its stakeholders.