Robust Growth in 3Q2020 Reflecting Gradual Recovery
HONG KONG, Feb. 10, 2021 /PRNewswire/ — Wine’s Link International Holdings Limited (“Wine’s Link” or the “Company”; HKEX: 8509) announced the unaudited results of the Company and its subsidiaries (collectively, the “Group”) for the third quarter (“3Q2020”) and nine months ended 31 December 2020 (the “Period”).
Results Highlights for 3Q2020 and the nine months ended 31 December 2020, as compared to same period of last year:
Revenue for 3Q2020 improved by 7.3% to HK$90.2 million
Gross profit for 3Q2020 and the Period surged 46.3% and 9.7%, respectively
Gross profit margin for the Period increased 3.7 p.p. to 24.1%
Profit and total comprehensive income attributable to owners of the Company increased significantly by 93.6% and 37.2%, respectively
Earnings per share for the Period was HK4.28 cents, up 37.2%
During the Period, despite the outbreak of the novel coronavirus (“COVID-19”) pandemic, the wine industry in Hong Kong has seen an increasing trend, driven by the expansion of off-trade distribution channels such as grocery stores and convenience stores.
Solid Financial Results and Signs of Gradual Recovery in 3Q2020
During the Period, the Group’s revenue amounted to HK$204.3 million, down by approximately 7.2% from approximately HK$220.1 million compared to the same period last year. The decrease was primarily caused by the outbreak of COVID-19. Yet, revenue for 3Q2020 surged 7.3% to approximately HK$90.2 million compared to the same quarter last year, showing a gradual recovery of sales in 3Q2020.
The overall gross profit margin for the Period increased 3.7 p.p. to approximately 24.1% compared to the same period last year. A relatively higher gross profit margin was recorded due to the increase in the sales of certain highly sought-after Premium Collectible Red Wine which yielded a relatively higher gross profit margin.
Selling and distribution expenses for the Period decreased from approximately HK$13.1 million to approximately HK$11.5 million compared to the same period last year, which was primarily attributable to a decrease in rent and rates in connection with the rental concession granted by the landlords of the retail stores in light of the outbreak of COVID-19.
During the Period, the Group recorded robust growth in profit, notwithstanding the challenging operating environment. Profit and total comprehensive income attributable to the owners of the Company for the Period amounted to approximately HK$17.1 million, representing a growth of 37.2% compared to the same period last year. For 3Q2020, the Group even recorded an increase of 93.6% in profit and total comprehensive income attributable to the owners of the Company to HK$12.6 million. The board of directors of the Company does not recommend the payment of an interim dividend to the shareholders of the Company for…