"Profit Warning" HERBS GROUP gross profit declines, expected to turn from profit to loss in mid-term results

HERBS GROUP (02593.HK) issued a profit warning, expecting a loss of between HKD 7 million to 8 million for the six months ending in June, compared to a net profit of HKD 7.5 million in the same period last year. This is mainly due to increased promotional discounts during the period, leading to a decline in gross profit; rising advertising and promotional expenses; and increased employee costs