Net profit Surged Significantly by over 80% YoY

Highlights:

• Revenue increased by 16.3% to approximately HK$2,305.9 million.
• Gross profit increased by 22.4% to approximately HK$817.3 million.
• Operating profit increased by 75.9% to approximately HK$248.9 million.
• Profit attributable to owners of the Company increased by 83.1% to approximately HK$201.0 million, if excluding the government subsidies of approximately HK$18.0 million, core net profit increased by 66.7% YOY.
• As at 31 March 2023, the Group operated a total of 154 chain retail stores, including 145 retail stores in Hong Kong, 7 retail stores in Macau and 2 retail stores in Mainland China.
• Introduced China Merchants Hoi Tung Trading Company Limited, a wholly-owned subsidiary of China Merchants Group Limited, as major shareholder to fully accelerate deployment in the Greater Bay Area and overseas market.
• Basic earnings per share was approximately 20.1 cents.

Financial Highlights:

For the year ended 31 Mar
HK$'000	2023	2022	Change
Revenue	2,305,907	1,983,526	+16.3%
Gross profit	817,263	667,654	+22.4%
Gross profit margin	35.4%	33.7%	+1.7p.pt.
Operating profit	248,921	141,493	+75.9%
Profit attributable to owners of the Company	200,997	109,804	+83.1%
Profit attributable to owners of the Company (excluding government subsidies)	183,001	109,804	+66.7%
Basic earnings per share (HK cents)	20.1	11.0	+82.7%

HONG KONG SAR - Media OutReach - 5 June 2023 - Best Mart 360 Holdings Limited ("Best Mart 360" or the "Company", together with its subsidiaries, the "Group"; stock code: 2360.HK), a leisure food retailer in Hong Kong, announced its annual results for the year ended 31 March 2023 ("Financial Year under Review"). During the Financial Year under Review, the revenue recorded by the Group amounted to approximately HK$2,305,907,000, representing an increase of approximately 16.3%. During the Year, the Group recorded a 2.5% growth in same store sales performance (2022: approximately 7.3% increase). Such decrease in growth mainly attributable to the high base of the financial year ended 31 March 2022. During the Financial Year under Review, gross profit for the year ended 31 March 2023 was approximately HK$817,263,000 (2022: approximately HK$667,654,000). Gross profit margin of the Group was approximately 35.4% (2022: approximately 33.7%). The increases in gross profit margin depends on the Group's efforts to optimize product structure and effectively adjust sales and marketing strategies. Profit attributable to owners of the Company was approximately HK$200,997,000 (2022: approximately HK$109,804,000), representing a significant increase of approximately 83.1%, if excluding the government subsidies of approximately HK$17,996,000, core net profit increased by approximately 66.7%. During the Financial Year under review, basic earnings per share was 20.1 cents (2022: 11.0 cents). BUSINESS REVIEW26 new retail stores & increase footprint in residential areas As at 31 March 2023, the Group operated a total of 154 chain retail stores (31 March 2022: 138 stores), comprising 150 "Best Mart 360˚" stores and four "FoodVille" stores (31 March 2022: 135 stores and three stores, respectively). In terms of geographical coverage, as at 31 March 2023, the Group operated 145 stores, seven stores and two stores in Hong Kong, Macau and Mainland China, respectively (31 March 2022: 130 stores, six stores and two stores, respectively). During the Financial Year under Review, the Group opened 26 new retail stores (including 25 in Hong Kong, one in Macau), and closed 10 stores upon expiration of their respective lease terms in line with the adjustment in the Group's store opening strategy. Rental expense (cash basis) for retail stores was approximately HK$220,230,000 for the year ended 31 March 2023, representing an increase of approximately 3.8% as compared with approximately HK$212,136,000 for the financial year ended 31 March 2022. The ratio of rental expense of retail stores to sales revenue was approximately 9.6%, which was lower than that of approximately 10.7% for the financial year ended 31 March 2022. Kept optimising product mix & enhancing the development of private label products During the Financial Year under Review, the Group continued its global procurement policy and mission by sourcing a broad spectrum of products worldwide to meet and satisfy market trend and demand. To better cater to the needs of the local community and the internationally travellers, in addition to further strengthening the supply of basic foodstuffs such as cereals, noodles,...