The board of directors of Hypebeast Limited (HKG: 150) has announced the Group’s unaudited key financial results for the three months ended 31 December 2021 (FY2022 Q3).
The Group started the Financial Year on a high note and continued momentum in FY2022 Q3 with a strong emphasis on realizing strategic and geographical expansion initiatives to capitalize on new business opportunities. In particular, the Group has executed a multi-layered diversification strategy, including content generation in new interest areas such as art and sports, the continued expansion of advertising capabilities offered by the Group’s Media segments, and product expansion on the E-Commerce and Retail segments, all of which have energized existing consumers and paved the way for future business growth.
As the trend towards digital channels continues, the Group has made a corresponding greater shift in marketing and advertising budgets from traditional marketing channels to digital and online channels, and the Group expects to benefit from this dynamic operating environment. The Group’s existing strategies and a favorable operating environment will be strong drivers of new user acquisition and revenue growth throughout FY2022 and into the coming financial year.
— Revenue for 9M2022 was HK$681.1 million, increasing 43.9% compared to HK$473.3 million recorded in 9M2021;
— Revenue for FY2022 Q3 was HK$240.2 million, increasing 27.9% compared to the HK$187.9 million recorded for FY2021 Q3;
— Gross profit margin improved to 58.2%, representing a year-on-year increase of 8.8 percentage points from 49.4%;
— Gross profit for 9M2022 was HK$396.4 million, representing an increase of 69.5% from HK$233.8 million in the same period last year.
— The Media segment recorded a year-on-year increase in revenue of 66.2% from HK$302.7 million in 9M2021 to HK$502.9 million in 9M2022;
— Media segment revenue in North America and major European countries rebounded strongly compared to the same period last year, with year-on-year increases of 177.7% and 69.0% respectively for 9M2022;
— Gross profit margin for the Media segment increased by 7.7 percentage points versus the prior year to 63.1% for 9M2022. The improvements were mainly due to production cost efficiencies generated from the increased scale of media advertising production and streamlined campaign deliveries in the Media segment.
E-commerce and Retail Segment
— The E-commerce and Retail segment revenue for 9M2022 was HK$178.2 million, representing an increase of 4.4% from HK$170.7 million in 9M2021;
— Gross profit from the E-commerce and Retail segment increased by 19.2% from HK$66.2 million in 9M2021 to HK$78.9 million for 9M2022, while gross profit margin improved by 5.5 percentage points to 44.3% in 9M2022 due to increased sell-through rates and a higher proportion of full-price sales achieved from continuous improvements in product marketing and streamlined consumer shopping experience;
— The Group continued its product expansion strategy, expanding its offerings to homeware, toys and other lifestyle products on HBX to cater to all aspects of the HBX customer’s lifestyle needs.
— Selling and marketing expenses increased by 42.9% from HK$78.2 million for 9M2021 to HK$111.8 million for 9M2022. As a percentage of revenue, selling and marketing expenses remained constant at 16.5% for 9M2021 and 9M2022;
— Administrative and operating expenses were HK$151.9 million for 9M2022, up by 77.6% from HK$85.5 million for 9M2021. As a percentage of revenue, administrative and operating expenses increased from 18.1% for 9M2021 to 22.3% for 9M2022;
— Increase in operating expenses as a percentage of revenue from 34.6% in 9M2021 to 38.7% in the current period was mainly caused by (i) increases in headcounts within the Group’s sales and marketing team to facilitate current and future business growth; and (ii) prudent cost management during the COVID-19 pandemic last year and government subsidies received in the comparative period.
For further details on the quarterly results performance, visit the Group’s corporate website to view the full announcement.
About Hypebeast Limited (HKG: 150)
Hypebeast Ltd. is a publicly listed media and retail company that lives at the forefront of global culture, offering digital media, e-commerce and creative agency services to cultural enthusiasts worldwide. Listed on the Hong Kong Stock Exchange since 2016 and with a total reach of over 44.7M users across all platforms, the Group’s Hypemedia division boasts global readership across Asia Pacific, North America, Europe and more, with the flagship Hypebeast platform available in five languages. The platform and community empower the Group’s various businesses, which encompasses Hypebeast and its multiple content distribution platforms, Hypemaker, its global creative agency and HBX, its e-commerce and retail platform.