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Friday, February 22, 2019

Rising export sales lifts furniture maker Lii Hen Q4 net profit

CORPORATE NEWS
Thursday, 21 Feb 20195:40 PM MYT

KUALA LUMPUR: Furniture maker Lii Hen Industries Bhd
image: https://cdn.thestar.com.my/Themes/img/chart.png said export sales jumped by almost a fifth in the last quarter, boosting its profits.

Earnings in the three months ended Dec 31 soared 39.7% to RM21.5mil from a year ago, the company said in a filing with Bursa Malaysia today. Revenue climbed 17.2% to RM216.8mil.

For October to December period, export sales grew 19% to US$50mil from US$42mil a year earlier. The average ringgit exchange rate was little changed at 4.16 in the last quarter of 2018.

Lii Hen said bedroom and sofa sets were the main contributors for the increase whereas there was a slight decrease in revenue for the dining and office furniture.

Local sales, however, declined 2.3%.

For the full year (FY18), net profit stood at RM57.8mil compared with RM71.5mil previously. Revenue was higher at RM801.2mil.

Export sales in 2018 rose 21% to US$192mil from US$158mil previously, but the company said stronger ringgit and decereased local sales capped its revenue growth at 12%.

The lower net profit was attributed to higher operating cost and unfavourable exchange rates.

“In the local front, the Group continues to face challenges in the management of production costs and availability of workforce that may impact on the group’s financial performance,” it said.

To mitigate the impact, Lii Hen said it will continue to focus on the group’s core products by diversifying its product range to strengthen the market position and expand the customer base and simultaneously continue to adopt an effective cost management.

“With better controllable cost structure and wider sales market base, the board is cautiously optimistic that the Group will remain profitable for the new financial year of 2019,’ it said.

Read more at https://www.thestar.com.my/business/business-news/2019/02/21/higher-export-sales-lifts-lii-hen-q4-net-profit/#0rXODfaULbc6p7jk.99

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