JHC owner stares at large profit fall

International Housewares Retail (1373), the operator of Japan Home Centre, issued a warning that its net profit for the six months ended in October 2023 is anticipated to decline by as much as 38 percent compared to the previous year.

The company is expected to announce a decrease in net profit ranging from approximately 32 percent to 38 percent, with a range of HK$48.36 to HK$53.04 million, in comparison to the adjusted profit of approximately HK$78 million, excluding Covid-19-related subsidies.

Meanwhile, its revenue is expected to decrease by about 4.7 percent year-on-year from a high base due to increased demand for supplies during the Covid pandemic. Additionally, revenue decreased as more people traveled abroad following the lifting of travel restrictions in the city.

The decline is also attributed to the absence of the government's support scheme during the six months ended October 2023, in contrast to the receipt of HK$32 million in grants related to the Covid outbreak.

And the increase in operating costs can be attributed mainly to higher staff costs and one-time expenses associated with the relocation and upgrade of their warehouse.

Meanwhile, CEC International (0759), the parent of 759 Store, expects its net profit for the six months ended October to be around HK$100,000 to HK$500,000, down from HK$33.8 million in the same period last year. This decline is primarily attributed to the absence of government subsidies related to the pandemic and a significant increase in outbound travelers.