Convenience Retail Asia Revenue Up 13.1% In H1 2011

Convenience Retail Asia Limited, the operator of Circle K convenience stores and Saint Honore cake shops in Hong Kong and on the Chinese mainland, has published its semi-annual results as of June 2011, stating that its net profit increased by 35.25% to HKD78.018 million.

The company said its turnover increased by 14.1% year-on-year to HKD1.887 billion during the first six months of 2011, while net profit attributable to shareholders increased by 35.25% to HKD78.018 million. Sales at comparable convenience stores — a key performance measure referring to stores in existence throughout 2010 and 2011 — grew by 10.6% and 14.2% in Hong Kong and Southern China, respectively.

Meanwhile, its gross margin and other income as a percentage of turnover increased to 37% compared with 36.5% in the first half of 2010, while operating expenses decreased from 32.5% of turnover to 32.1% year-on-year due to tight operational control and a higher sales base.

Richard Yeung, chief executive officer of Convenience Retail Asia, told local media that while the company turned in a robust performance in the first half of 2011, rising costs of food, labor and retail rental will continue to put pressure on its operating costs in the months ahead. The company will remain vigilant in monitoring market trends and implementing cost-cutting measures where necessary to protect margins and bottom-line performance.

Convenience Retail Asia is a listed retailing member of the Li & Fung Group, operating a total of over 500 retail outlets under the Circle K and the Saint Honore brands in five markets, including Hong Kong, Macau, Guangzhou, Shenzhen, and Zhuhai.