WEILONG Delicious Global Holdings Full Year 2023 Earnings: Misses Expectations

WEILONG Delicious Global Holdings (HKG:9985) Full Year 2023 Results

Key Financial Results

• Revenue: CN¥4.87b (up 5.2% from FY 2022).
• Net income: CN¥880.4m (up 482% from FY 2022).
• Profit margin: 18% (up from 3.3% in FY 2022). The increase in margin was primarily driven by lower expenses.
• EPS: CN¥0.38 (up from CN¥0.07 in FY 2022).

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

WEILONG Delicious Global Holdings Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 1.6%. Earnings per share (EPS) also missed analyst estimates by 5.5%.

The primary driver behind last 12 months revenue was the Seasoned Flour Products segment contributing a total revenue of CN¥2.55b (52% of total revenue). Notably, cost of sales worth CN¥2.55b amounted to 52% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Sales & Marketing costs, amounting to CN¥806.7m (56% of total expenses). Explore how 9985's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 8.0% growth forecast for the Food industry in Hong Kong.

Performance of the Hong Kong Food industry.

The company's shares are down 4.6% from a week ago.

Risk Analysis

We don't want to rain on the parade too much, but we did also find 1 warning sign for WEILONG Delicious Global Holdings that you need to be mindful of.

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