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Friday, November 28, 2014

Bonia records higher Q1 revenue, earnings down on operating costs


KUALA LUMPUR: Underpinned by better sales from the Braun Buffel brand and export sales to Vietnam and Indonesia, Bonia Corp Bhd’s revenue for the first quarter ended Sept 30 rose 1.5% to RM170.88mil from a year earlier. 
Despite that, its net profit fell 8.9% to RM12.96mil versus RM14.22mil in the same period last year due to higher operating costs. 
Pre-tax profit recorded 4.4% lower at RM20.1mil due to operating expenses that rose 
3.5% relatively more than the increase in revenue, with gross profit margin sustained at approximately 60%, the company said on Thursday. 
“After the expansion into Vietnam and Indonesia, the group continues to see better sales generated from these two countries. 
“For the local market, the group recorded a negative growth in revenue, dropped by RM870,000 due to weaker consumer sentiment,” the consumer discretionary firm said, adding that export to Saudi Arabia also decreased by RM940,000 for the three-month period.
Bonia said the stronger performance of the Braun Buffel brand, which raked in RM2.1mil, was derived from its two new boutiques in Singapore that were opened in the financial year ended June 30, 2014 (FY14). 
The pre-tax profit recorded of RM20.2mil was 74% higher quarter-on-quarter. 
“Compared to the previous quarter, revenue for the current quarter under review had increased by 3% amounting to RM5mil and operating costs had reduced by 6.4% amounting to RM5.8mil and in tandem, the profit before tax increased by 73.6% amounting to RM8.5mil.”
The company anticipated more challenging times ahead as it expected softer consumer demand and the Malaysian economy that grows at a slower pace next year.
“Consumers are expected to be more cautious about their spending after the October fuel subsidy reduction. 
“The implementation of the Goods and Services Tax (GST) is also expected to temporarily impact domestic demand,” it said. 
It would continue to focus on its expansion plan to overseas markets in particularly Indonesia and Cambodia.

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