Business Review HEALTH AND BEAUTY

Brunei Chinese mainland Hong Kong Indonesia Macau Malaysia Singapore The Philippines Vietnam Brunei Chinese mainland Hong Kong Indonesia Macau Malaysia Singapore The Philippines Vietnam

Sales for the Health and Beauty division came in slightly higher than the prior year at US$2.5 billion, with like-for-like (LFL) sales remaining broadly stable. Underlying operating profit was US$211 million for the year.

Sales of Goods
US$ 2.5bn
Operating Profit
US$ 211m
Store Network
2,625 stores
‡ Including 1,228 associates and joint ventures stores.
Ophelia Kwan, a Mannings team member, explores the interactive ‘Mannings’ Picks’ display of curated best-selling skincare and health products

Ophelia Kwan, a Mannings team member, explores the interactive ‘Mannings’ Picks’ display of curated best-selling skincare and health products

Health and Beauty division sales reached US$2.5 billion, slightly exceeding last year’s figures

Sales for the Health and Beauty division came in slightly higher than the prior year at US$2.5 billion, with LFL sales remaining broadly stable. Underlying operating profit was US$211 million for the year, slightly below 2023.

Hong Kong reported strong LFL sales performance in the first quarter, which then decelerated in the second and third quarters due to a strong comparable period in 2023 when consumption vouchers were disbursed in April and July 2023. Sales momentum improved in the fourth quarter with Mannings continuing to gain market share. Profit for the year increased 6%, attributable to gross margin improvement and disciplined cost control, despite a 2% decline in full-year LFL sales. Guided by a customer-first proposition, the Pharmacare programme reached a significant milestone since its launch in 2023. In partnership with Bupa, one of Hong Kong’s major medical insurers, the Mannings team further expanded Pharmacare into its network of more than 150,000 members. Leveraging Mannings’ position as the largest pharmacist network, the programme offers free consultations and medication for a range of common illness. The Mannings team continued to enhance in-store experience with the launch of the Health Pod at our International Finance Centre flagship store in Hong Kong. This innovative service offers an AI wellness assessment that measures over 20 metrics, followed by personalised consultations and product recommendations. Initial results have been promising, with customers using the service showing a basket size three times higher than average. In addition, the team also launched a new Mannings app in December to grow its digital footprint. LFL sales of Mannings China declined as the business pivots away from offline stores to online channels which involves the closure of the majority of its offline network.

Guardian in South East Asia reported US$857 million in sales, reflecting a 5% year-on-year increase, driven by growth in basket size across all key markets. Indonesia, in particular, saw a 17% LFL sales growth supported by increased mall traffic and strong execution of promotional campaigns. Strong profit growth was reported across most key markets, underpinned by gross margin expansion and operating leverage. In Singapore, strong commercial execution and a favourable product mix contributed to gross margin expansion with healthcare products accounting for more than 60% of sales.

28 %28 %Group Sales *
55 %55 %Group Profit
*
Sales of goods.
Based on operating profit before effect of adopting IFRS 16, excluding selling, general and administrative expenses and non-trading items.
US$ 857m

Guardian in Southeast Asia reported US$857 million in sales, reflecting a 5% year-on-year increase, driven by growth in basket size across all key markets

The newly launched Mannings health pod at the IFC Mall in Hong Kong

The newly launched Mannings health pod at the IFC Mall in Hong Kong

Guardian Malaysia team member, Norina Binti Zulkepli at the Sunway Pyramid store

Guardian Malaysia team member, Norina Binti Zulkepli at the Sunway Pyramid store

Mannings at The Venetian, Macau

Mannings at The Venetian, Macau

Our pharmacists, Jessica Teo and Roman Lester Rosales at Guardian Takashimaya Shopping Centre, Singapore

Our pharmacists, Jessica Teo and Roman Lester Rosales at Guardian Takashimaya Shopping Centre, Singapore