3DG Holdings revenue up 18%, hedging losses impact profit

3DG Holdings (HKEX:2882) announced its annual results for the nine months ended March 31, 2025, revealing an 18% increase in revenue, reaching HK$712 million, compared to the twelve months of 2023/24. Gross margin also improved, rising by 7 percentage points to 35%. Despite this revenue growth, the operating loss increased by 25% to HK$164.11 million, primarily attributed to hedging losses resulting from a surge in gold prices. Excluding these hedging losses, the company would have reported an operating profit of HK$6 million. The loss for the period decreased by 4% to HK$200 million, with the loss attributable to equity holders down 30% to HK$94.864 million. The company noted that its Mainland China business, including retail, licensing, and e-commerce, turned profitable when excluding gold hedging losses. The company operated 238 shops as of March 31, 2025.