Fewer sales, but more profit for Bonia
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While Malaysian fashion retailer Bonia sold fewer handbags in its second quarter, it did manage to grow its net profit.
It achieved a net profit of RM11.99 million (US$3 million) for the period, to the end of December, up 8 per cent. It attributes the upswing to lower running costs and improved gross profit margins.
Quarterly revenue dropped 7 per cent to RM160.34 million, Bonia saying this had been anticipated because of the closure of counters as part of a rationalisation process.
However, the lower revenue was offset by improved gross profit margins, up 5 per cent.
Year-end sales and the festive season boosted revenue and operating profit to RM15.35 million.
Business in Indonesia, Singapore and Vietnam was hit by weak consumer sentiment.
Still, the quarterly growth was not enough to stem the fall on its half-year earnings, which saw net profit slide 31 per cent to RM13.3 million. Revenue contracted by 10 per cent to RM279.23 million.
Questions & Answers
Q.Why did Bonia's quarterly revenue drop?
Why did Bonia's quarterly revenue drop?
Bonia stated the drop in quarterly revenue was anticipated due to the closure of counters, which formed part of a rationalisation process.
Q.How did Bonia achieve increased profit despite lower sales?
How did Bonia achieve increased profit despite lower sales?
The company attributed its profit growth to lower running costs and improved gross profit margins. These factors helped offset the reduced revenue.
Q.Which international markets were negatively impacted during the quarter?
Which international markets were negatively impacted during the quarter?
Business in Indonesia, Singapore, and Vietnam was affected by weak consumer sentiment, according to Bonia.
Q.Did the positive quarterly results improve Bonia's overall half-year performance?
Did the positive quarterly results improve Bonia's overall half-year performance?
No, the quarterly growth was insufficient to prevent a fall in Bonia's half-year earnings, with net profit sliding 31 per cent.
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