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Financial Highlights

• Revenue increased by 18% to HK$2,942.0 million
• Gross profit increased by 24% to HK$million
• Profit attributable to owners of the Company increased by 90% to HK$million
• Recommended interim dividend increased by 175% to HKcents

*Before a change in remeasurement of contingent consideration

(Hong Kong, June 28, 2024) Pico Far East Holdings Limited (‘Pico’, ‘the Company’ or ‘the Group’, Stock code: 752.HK), a leading global total brand activation company, today announced its 2024 interim results for the 6 months ended April 30, 2024.

Group revenue for the six months ended April 30, 2024 was HK$2,942.0 million (corresponding period in 2023: HK$2,493.2 million), representing a 18% increase on a year-over-year basis.

Profit from core operations was HK$267.3 million (corresponding period in 2023: HK$173.8 million), representing a 54% increase on a year-over-year basis. Profit attributable to owners of the Company was HK$191.7 million (corresponding period in 2023: HK$101.1 million), representing a 90% increase on a year-over-year basis.

The Board recommends payment of an interim dividend of HK5.5 cents per ordinary share for the six months ended April 30, 2024 (six months ended April 30, 2023: HK2.0 cents per ordinary share).

With the global economy showing moderating inflation and continuing sustained growth, the Group has successfully navigated the economic challenges it faced during the first half of this financial year. Leveraging the Group’s Integrated Brand Experience framework and Content, Community, Creative and Data strategy, the Group is well-positioned to execute comprehensive cross-platform activations enhanced by data and digital components, thereby establishing a notable advantage in a progressively competitive environment.

In mainland China, though the economy has continued to face challenges in sustaining its post-reopening momentum, the Group’s 360-degree solutions have allowed it to retain high quality clients, convert new clients, and continue growing. Continuous government support and subsidies have also been a strong financial incentive, sparking vigorous activity from local and international enterprises.

In Southeast Asia, the Group maintained its strong growth momentum. Resilient strategies have enabled it to maintain its leading market position by delivering additional value to a loyal client base.

In the Middle East, the Group’s investment in core office and production facilities in Saudi Arabia has paid off in the form of an expanded portfolio and clientele, and has generated notable growth impetus. Major projects such as COP28 and NEOM have heralded a sizeable opportunity for the Group to continue expanding its market share.

In the USA, the Group’s ability to offer seamless solutions across multiple channels and touchpoints has opened up ample avenues for business expansion and client acquisition. Strengthened partnerships with key clients such as HP and State Farm have enhanced the Group’s long-term sustainability, resilience and profitability in the region. Opportunities stemming from Europe’s ongoing recovery and the booming technology sector continue to enable the Group to sustain revenue and profit growth.

The Group recently made the strategic decision to dispose of its 45% equity interest in InfocommAsia Pte Ltd. in Singapore, at a valuation consistent with the terms stipulated in the joint-venture agreement. This divestment enables the Group to redirect resources and management focus towards core business activities, enhancing its competitiveness and profitability. Proceeds from the transaction will provide liquidity and capital that can be allocated to strategic initiatives.

The Group annually publishes a comprehensive ESG report and has always regarded its approach to sustainability via responsible business practices, environment, employees and communities as fundamental to its operations and business. During the period under review, such activities included those aimed at engaging with and giving back to communities, helping people build better lives, and fostering employee development.

The Group has achieved significant advancements in evolving into a data-driven organisation, aiming to enhance brand value and operational efficiency. With the Group’s well-established operational excellence and technological prowess, the Group is already positioned to competitively pursue an expanded market share in a recovering landscape.

Operations Review

Outlook

According to the International Monetary Fund’s World Economic Outlook of April 2024, inflation is expected to continue to stabilise on a worldwide basis, while economic growth is expected to be slow but stable through 2024. 

Though well-placed to cope with virtually any challenge, the Group is acutely aware of potential risks such as supply chain disruption, fluctuating demand, and the increasing demand for high quality yet low-cost services.

With a vision to cultivate an innovative culture with the agility to adapt to evolving market dynamics, the Group has taken the lead in cost efficiency, production and differentiation, priming it to capture a larger slice of the recovering market. The Group’s robust and diverse projects in the pipeline and unique digital-experiential expertise will enable it to thrive amid a volatile market and intensifying competition.

On May 31, 2024, the Group strategically acquired the remaining 40% stake of Infinity Marketing Team, LLC (‘IMT’), which allowed it to achieve full ownership. Based in California, IMT specialises in marketing, event management and promotional services, making it a valuable addition to the Group’s portfolio. The Group’s full ownership of IMT not only allows it to expand its footprint and pave the way for its new business development and client possibilities in the USA, but also enables the Group to offer more comprehensive integrated solutions across a variety of channels and touchpoints. IMT’s commitment to operational excellence also aligns perfectly with the Group’s mission, promising to bolster its ability to create long-term value for stakeholders.

The Group is confident that its strategic, methodic and proactive expansions into new markets with new and enhanced service offerings (incorporating AI, data, web3 and other technologies) will continue to foster resilience and profit growth on a sustained basis. The Group is also confident that its commitment to operational efficiency and excellence and optimisation across all facets of its business will continue to strengthen its ability to create long-term value for shareholders.