Chervon Holdings Full Year 2023 Earnings: Misses Expectations

Chervon Holdings (HKG:2285) Full Year 2023 Results

Key Financial Results

• Revenue: US$1.37b (down 31% from FY 2022).
• Net loss: US$37.1m (down by 127% from US$139.4m profit in FY 2022).
• US$0.073 loss per share (down from US$0.28 profit in FY 2022).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Chervon Holdings Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 13%. Earnings per share (EPS) was also behind analyst expectations.

The primary driver behind last 12 months revenue was the Outdoor Power Equipment segment contributing a total revenue of US$811.4m (59% of total revenue). Notably, cost of sales worth US$987.9m amounted to 72% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Sales & Marketing costs, amounting to US$244.1m (58% of total expenses). Explore how 2285's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Consumer Durables industry in Hong Kong.

Performance of the Hong Kong Consumer Durables industry.

The company's shares are up 11% from a week ago.

Risk Analysis

Before you take the next step you should know about the 1 warning sign for Chervon Holdings that we have uncovered.

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