Bossini profit warning issued
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A “significant” drop in Bossini profit attributable to its owners is expected for the year to the end of June.
Its board says the group expects only a small profit close to breakeven, compared to the profit attributable to the owners of HK$292 million (US$37 million) for the previous year.
It says reasons for the decrease include a non-recurring gain of about $265 million on the disposal of property in the previous year, and a drop of about 13 per cent in revenue from the $2 billion of the previous year, attributable to continuously weak consumer sentiment and “severe competition” in core markets.
This information is based on a preliminary assessment only, says Bossini, with its audited annual results to be announced in late September.
Questions & Answers
Q.What is the primary reason for Bossini's anticipated profit decline this year?
What is the primary reason for Bossini's anticipated profit decline this year?
The expected drop is mainly due to a non-recurring gain from property disposal last year, which contributed about $265 million to previous profits. Also, revenue fell by 13% because of weak consumer sentiment.
Q.How much did Bossini's revenue fall compared to the previous year?
How much did Bossini's revenue fall compared to the previous year?
Bossini experienced a drop of about 13 per cent in revenue. This is against the $2 billion revenue reported in the previous year, with the decline attributed to ongoing weak consumer sentiment.
Q.What factors are contributing to the challenging market conditions for Bossini?
What factors are contributing to the challenging market conditions for Bossini?
The company points to continuously weak consumer sentiment and severe competition in its core markets as key factors. These pressures have contributed to the anticipated significant drop in profit for the year.
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