Adopts Effective Cost Control Measures
Achieves Turnaround in 2H 2020/21
Ulferts International Limited (Ulferts International or the Group, Stock Code: 1711.HK), a well-known furniture retailer in Hong Kong, today announced its annual results for the year ended 31 March 2021 (the Year).
Despite a challenging retail landscape during the Year, the Group’s total revenue increased to HK$234.5 million (2020: HK$218.9 million). Gross profit increased by 13.8% to HK$152.9 million (2020: HK$134.4 million), while gross profit margin increased by 3.8 percentage points to 65.2% (2020: 61.4%), mainly attributable to a larger contribution from “at . home” which enjoyed a higher profit margin.Attributable to an increase in revenue, and a decrease in operating costs as a result of the Group’s sound and effective cost control measures, coupled with a one-off other income recognised during the Year, the Group was able to achieve a net profit of HK$16.8 million during the Year (2020: net loss of HK$11.6 million), while a net loss of HK$1.0 million was recorded for the six months ended 30 September 2020, indicating a turnaround during the second half of the Year. An earnings before interest, tax, depreciation and amortisation increased markedly to HK$35.2 million (2020: HK$2.5 million). Basic earnings per share was HK2.10 cents (2020: basic loss of HK1.45 cents per share). The Group has recommended the payment of a final dividend of HK0.63 cent (2020: Nil) per share.
Cash and cash equivalents of the Group increased to HK$93.7 million (2020: HK$63.7 million). As at 31 March 2021, the Group did not have any bank borrowings (2020: Nil).
Retail Business Review
Revenue from the retail segment amounted to HK$217.0 million (2020: HK$198.6 million), accounting for 92.5% (2020: 90.7%) of the Group’s total revenue. Among the retail revenue, aggregate sales of “Ulferts” and “Ulferts Signature” amounted to HK$151.4 million (2020: HK$153.7 million), and remained the key revenue contributor, accounting for 69.8% (2020: 77.4%) of total retail revenue. The sales revenue of “at . home” reported a growth of 68.0% to HK$40.5 million (2020: HK$24.1 million), accounting for 18.7% (2020: 12.1%) of total retail revenue.
As at 31 March 2021, the Group had 23 points-of-sale (“POS”) in Hong Kong, including 1 “Ulferts Signature” showroom, 4 “Ulferts” showrooms, 5 “at . home” stores, and a total of 13 POS covering “Dormire” specialty stores, “Ulfenbo” department store counters and pop-up stores. During the Year, 1 “at . home” mega pop-up store was opened in Mongkok, and 3 “Ulfenbo” pop-up stores were opened in Shatin, Sheung Shui and Tuen Mun respectively, to further expand the market coverage.
Wholesale Business Review
The Group operates wholesale business of mattresses, sofabeds and sofas under its self-owned label “Ulfenbo” through over 200 dealers in Hong Kong and Macau. Based on its long establishment and quality products, the “Ulfenbo” brand has been recognised by the “Hong Kong Top Brand Mark” for seven consecutive years since 2014, under the Hong Kong Top Brand Mark Scheme organised by The Chinese Manufacturers’ Association of Hong Kong and Hong Kong Brand Development Council.
Mr. Ricky Ng, Executive Director & Chief Executive Officer of Ulferts International, said, “Looking ahead, the economies of countries across the world will continue to be hit hard by the pandemic, posing challenges for the macro-economic environment. Though there are still a few sporadic outbreaks locally, the social gatherings have gradually returned to normal, providing favourable conditions for the retail market. It is generally believed that both retail and property markets will regain momentum more apparently afterwards. The Group remains cautiously optimistic about the future retail market.”
Mr. Ng concluded, “Consumer behaviour has been reshaped during the pandemic with increased usage of online platforms. In view of this, the Group will continue to enhance its online sales platforms, and showcase and promote its furniture products on mobile apps or by social media engagements. Meanwhile, the Group will continue to enhance its sales network and strengthen its market presence. As the macro environment remains uncertain in the near term, the Group will closely monitor the market situation and adjust in response to changes, and strive to achieve sustainable growth in the long term.”
About Ulferts International Limited (1711.HK)
Established for over 45 years, Ulferts International is a well-known furniture retailer in Hong Kong dedicated to supplying high quality, stylish and affordable furniture for transforming living spaces into ideal homes. Ulferts International currently operates a few retail lines in Hong Kong including “Ulferts Signature”, “Ulferts”, “at . home”, “Dormire” and “Ulfenbo”. In addition, several online shopping platforms are available for maximizing market coverage. “Ulferts Signature”, “Ulferts” and “at . home” offer more than 50 furniture brands (some of which are international brands) imported from different suppliers in Europe and Asia, covering a wide variety of contemporary style furniture products targeting middle to high income group. Meanwhile, its self-owned brand, “Ulfenbo”, mainly offers mattresses, pillows and sofas through wholesaling to dealers and retailing under “Dormire” speciality stores, “Ulfenbo” department store counters, pop-up stores, and roadshows. For more information, please visit its website: www.ulfertsintl.com.
Investor / Media Enquiries
Ms. Anna Luk
Group IR Director
Tel: +852 2835 6783
Ms. Janice Au
Group IR Manager