Viva Goods Company Limited Issues Strong Profit Alert for FY2025

Key Highlights from the Profit Alert

• Return to Profitability: Viva Goods Company Limited has announced that, based on preliminary unaudited results for the year ended 31 December 2025 (FY2025), the Group expects to record a profit attributable to equity holders of not less than HK\$150.0 million. This is a remarkable turnaround from a loss of approximately HK\$70.4 million in the previous year (FY2024).
• Substantial Improvement in Adjusted EBITDA: Adjusted EBITDA is forecasted to reach at least HK\$1,250.0 million for FY2025, compared to approximately HK\$908.4 million in FY2024. This indicates significant operational improvement and enhanced profitability.
• Key Drivers of Turnaround:
  • Product and Pricing Realignment: The Group has optimized its product assortment with right pricing strategies to capture better margins.
  • Operational Efficiency and Cost Restructuring: Core processes have been streamlined and structural overhead costs at both store and corporate levels have been reduced.
  • Inventory Management: Disciplined controls have been implemented to optimize inventory levels and reduce holding costs.

Important Information for Shareholders

• Potentially Price-Sensitive Information: The strong turnaround from a loss to a significant profit, and the sharp increase in adjusted EBITDA, are material information that could have a positive impact on Viva Goods’ share price.
• Figures Are Preliminary: The announced figures are based on preliminary, unaudited consolidated management accounts and have not yet been audited or reviewed by the Company’s auditors or the audit committee.
• Final Results Pending: The audited annual results for FY2025 are still being finalized and are expected to be published by the end of March 2026. There may be further adjustments before the final announcement.
• Non-HKFRS Measure: Adjusted EBITDA is a non-HKFRS measure, calculated as profit before income tax plus net finance costs, depreciation, amortization, minus interest income, and excluding impairments and restructuring expenses.
• Shareholder Caution: Shareholders and potential investors are advised to exercise caution when dealing in the securities of the Company until the final results are confirmed.

Company Leadership

The announcement was authorized by the Board, led by Chairman and Co-Chief Executive Officer Mr. Li Ning, and Co-Chief Executive Officer Mr. Victor Herrero. The Board includes a mix of executive, non-executive, and independent non-executive directors, ensuring well-rounded governance.

Conclusion

Viva Goods Company Limited’s anticipated return to profitability and significant improvement in adjusted EBITDA marks a major positive development for the Group and its shareholders. The operational and strategic changes implemented by management appear to be yielding strong results. Investors should monitor the official release of audited results for any updates or revisions to these preliminary figures, as these could further impact the share price.

Disclaimer

This article is based on unaudited, preliminary information disclosed by Viva Goods Company Limited. Actual results may differ from those reported in this profit alert after the completion of the audit process. Investors are advised to exercise caution when making investment decisions and to refer to the official audited results announcement, expected by the end of March 2026, for confirmed figures.

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