Best Mart 360 Strengthens Revenue by 2.2% to HK$2.87 Billion, Proposes Final Dividend of HK9.0 Cents per Share

Best Mart 360 Holdings Limited, a prominent leisure food retailer in Hong Kong, has reported a revenue increase of 2.2% for the fiscal year ending December 31, 2025, reaching approximately HK$2.87 billion. This growth is significant in the context of a challenging retail environment, characterized by heightened competition and shifting consumer behaviors. The company has also proposed a final dividend of HK9.0 cents per share, reflecting its commitment to delivering value to shareholders.

Financial Performance Overview

The financial highlights for the year indicate a modest yet positive trajectory for Best Mart 360. Gross profit rose by 0.7% to approximately HK$1.04 billion, while the profit attributable to the owners of the company was approximately HK$219.7 million. This represents a decline from HK$245.9 million in the previous year, primarily due to a decrease in average revenue per store and a contraction in gross profit margin, which fell to 36.1% from 36.6% in 2024. The net profit margin before interest and tax also saw a decline, settling at approximately 9.8%.

The company operated a total of 183 chain retail stores as of December 31, 2025, an increase from 176 stores in 2024. This includes 178 stores in Hong Kong and 5 in Macau, highlighting the company’s strategic expansion efforts in the region.

Strategic Adjustments and Market Adaptation

In response to evolving market dynamics, Best Mart 360 has implemented strategic adjustments aimed at enhancing its operational efficiency and customer engagement. The company opened 10 new retail stores during the fiscal year while closing three stores upon lease expiration. This approach aligns with its strategy to optimize store performance and adapt to changing consumer preferences.

The retail landscape in Hong Kong is undergoing a significant transformation, influenced by factors such as increased spending by residents in Mainland China and the competitive pressure from e-commerce platforms. Best Mart 360 has responded by optimizing its product mix and enhancing its offerings of essential food items, including cereals, noodles, and frozen foods. The introduction of popular Mainland brands and specialty foods from around the globe has also been pivotal in meeting the diverse needs of local consumers and tourists.

Technological Integration and Customer Engagement

To bolster its market presence, Best Mart 360 has embraced technology through the launch of its grocery delivery service on the Foodpanda platform. This initiative aims to expand its online sales channels and cater to the growing demand for convenience among consumers. The company has also focused on enhancing customer loyalty through a revamped three-tier membership scheme and a second-generation mobile app, which collectively increased its membership base by approximately 5.1% to 2,395,862 members.

The integration of big data analytics into its marketing strategy has allowed Best Mart 360 to tailor its offerings and promotions more effectively, thereby enhancing customer engagement and retention.

Inventory Management and Supply Chain Optimization

As of December 31, 2025, Best Mart 360 reported a total inventory of approximately HK$316.8 million, a decrease of 6.7% year-on-year. This reduction is attributed to improved inventory management practices and the timing of the Lunar New Year holiday, which shifted from January to February. The company continues to source high-quality products from a diverse range of suppliers, including those from Japan, Mainland China, and Europe, ensuring a broad selection of approximately 3,425 stock keeping units (SKUs).

The focus on private label products has also been a strategic advantage, contributing approximately HK$520.8 million to revenue, which accounts for 18.2% of total sales. This segment not only enhances brand loyalty but also allows for better pricing control and quality assurance.

Future Outlook and Challenges

Looking ahead, Best Mart 360 faces a complex operating environment marked by geopolitical risks and economic uncertainties. The Board anticipates continued challenges in the retail sector in Hong Kong, yet remains cautiously optimistic about future growth. The company plans to prioritize its core market while optimizing its product offerings and expanding its private label range to better meet consumer demands.

Best Mart 360 is committed to maintaining operational efficiency through a flexible leasing strategy and moderate expansion policy, targeting a net increase of 10 retail stores annually under its dual-brand model. This approach aims to cater to diverse customer segments and enhance the company’s competitive edge in the retail market.

Mr. Hui Chi Kwan, Chief Executive Officer of Best Mart 360, emphasized the importance of a prudent and pragmatic operational approach in navigating the complexities of the current market landscape. The company’s focus on collaboration with stakeholders aims to improve business performance and deliver stable returns to shareholders.

For further insights into the financial performance and strategic initiatives of Best Mart 360, refer to the detailed analysis available on Zawya.

For the latest cybersecurity developments, threat intelligence and breaking updates from across the Middle East: Middle East