BRIEF: Sun Art returns to the black on changing store mix
Supermarket operator Sun Art Retail Group Ltd. (6808.HK) reported Tuesday that revenue for its latest fiscal year through March fell 1.4% year-on-year to 71.6 billion yuan ($9.91 billion). But the company returned to the black for the year with a net profit of 405 million yuan, reversing a 1.61 billion yuan loss in the previous fiscal year. It proposed a final dividend of HK$0.17 per share, bringing its total annual dividends to HK$0.34.
During the fiscal year, Sun Art shuttered eight hypermarkets and one superstore, while it also opened one new hypermarket, four superstores and four M-Club membership stores. As of March 31, the company operated 465 hypermarkets, 33 superstores and seven M-Clubs.
The company said that in today’s increasingly competitive retail landscape, customer footfall serves as both the foundation and true test of its values. It is implementing an “Everyday Low Price + Community Life Center” model through enhanced product competitiveness, optimized store layouts and elevated customer experience.
Shares of Sun Art opened up 12.4% at $HK2.18 on Wednesday. The stock is down over 20% from its peak over the past six months.
By Lau Chi Hang
To subscribe to Bamboo Works weekly free newsletter, click here
