Commune parent Koda boosts profit 156 per cent

1 min readUpdated May 19, 2025Aug 31, 20171:18 PM

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Furniture retailer Commune parent Koda Ltd has boosted its annual profit by 155.6 per cent in the last year, largely due to expansion of its store network.

In the year to June 30, the company achieved sales of US$4.1 million, up from $1.6 million last year. Revenue rose by a more modest 33.4 per cent to $49.5 million, up from $37.1 million the previous year as strong export orders were received from key markets.

Streamlined manufacturing operations in Malaysia and Vietnam helped gross profit margin rise from 27.7 per cent to 32.2 per cent.

Koda’s MD James Koh said even better figures are to come, after the strategic review announced in July in which Koda will continue to improve manufacturing efficiencies, strengthen its supply chain and refine and expand its Commune retail store network, especially in China.

Joshua Koh, Commune’s CEO, added: “Commune is gaining strong traction in China, especially among younger home-owners. We continue to build the brand and differentiate ourselves as we remain on schedule to open up to 100 stores in China by 2020.”

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What this means

Koda's aggressive Commune store expansion, particularly in China, is a calculated move to capture a growing market segment, akin to Panpuri's and Chagee's regional growth strategies. The focus on younger homeowners and improved manufacturing efficiencies suggests a robust, vertically integrated model designed to sustain the reported profit surge. This puts considerable pressure on local and international furniture brands competing for the same demographic. While the target of 100 China stores by 2020 is ambitious, it aligns with other brands like Kodak Apparel seeking physical market entry and expansion. The primary risk lies in execution and sustained brand differentiation in a crowded market. We should closely observe Commune's China store count by early 2020.

Maria Santos · Retail News Asia newsroom

Questions & Answers

What is Commune parent Koda's overall sales figure for the past year?

Koda Ltd achieved annual sales of US$4.1 million in the year to June 30. This figure marks an increase from $1.6 million in the previous year, showing significant growth.

What is Koda's strategy for future growth and profitability?

Koda plans to improve manufacturing efficiencies and strengthen its supply chain. The company also intends to refine and expand its Commune retail store network, with a particular focus on China.

By what percentage did Koda's annual profit increase in the last year?

Koda Ltd boosted its annual profit by 155.6 per cent in the last year. This substantial increase was largely attributed to the expansion of its store network.

What is Commune's expansion target for its stores in China?

Commune aims to open up to 100 stores in China by 2020. This expansion targets younger home-owners and seeks to build the brand's traction in the region.

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