Hong Kong beauty chain Bonjour warns of another loss
Bonjour Holdings has warned of a loss as high as US$12 million for the half year to June as it weighs the impact of protest activity and the Covid-19-driven lockdown of the border with Mainland China.
In a profit warning, the health & beauty retail group said a preliminary, unaudited review of its results suggests a loss “not less than 300 per cent” of that of the same period last year, when it finished the period $3.8 million in the red.
Besides the decline in inbound tourists to the territory local consumer sentiment weakened during the six months.
The company has also booked impairment provisions related to assets and property, and inventories resulting from losses at its retail stores, but such provisions are by nature non cash and have no impact on the group’s cash flow or liquidity.
Confirmed results will be released at the end of this month.
In April, Bonjour said it was delisting slow-moving products and had trimmed its store network to compensate for falling sales after reporting a full-year loss of $16.7 million.
In May, the husband-and-wife founders of the company stepped back from their senior leadership roles, with Dr Wilson Ip Chun Heng resigning as chairman and CEO, and his wife, Chung Pui Wan, stepping down as vice chairman. Both remained on the board.