Loss deepens for FJ Benjamin Holdings
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Restructuring has taken its toll on FJ Benjamin Holdings’s bottom line.
The fashion and lifestyle brand management company has deepened its full-year net loss to S$23 million (US$16.9 million) for its latest financial year, compared to S$17 million the previous year.
Group turnover subsided 14 per cent to S$253.6 million. Excluding the translation effects of foreign currency, the fall was 10 per cent.
Turnover from the fashion business declined 9 per cent to S$212.5 million, while timepieces fell 13 per cent to S$51.6 million, after excluding currency translation loss.
FJ Benjamin attributes the turnover decline to the closing of non-performing stores, discontinued businesses and the closure of its north Asian business, plus a S$10.4 million loss in converting Malaysian ringgit to Singapore dollars. These factors more than offset a slight increase in sales from franchise brands.
Gross profit margin was 39 per cent against 41 per cent in the previous year because of increased promotional expenses.
The group operating loss, excluding a one-time gain of S$19.6 million from the sale of mandatory convertible bonds and the sale of properties last year, was 32 per cent lower year on year at S$19.9 million.
FJ Benjamin says it expects the trading environment to remain challenging amid uncertain economic slowdown in its key markets.
“The restructuring that started in 2013 has been substantially completed, and associated losses are unlikely to recur,” says the group.
Questions & Answers
Q.What is the primary reason for the company's decrease in turnover?
What is the primary reason for the company's decrease in turnover?
The decline in turnover is attributed to the closure of non-performing stores, discontinued businesses, and the exit from its north Asian operations. There was also a S$10.4 million loss from converting Malaysian ringgit to Singapore dollars.
Q.Why did the company's gross profit margin decrease this financial year?
Why did the company's gross profit margin decrease this financial year?
The gross profit margin fell to 39 per cent from 41 per cent in the previous year. This reduction was primarily due to increased promotional expenses incurred by the group.
Q.How much was the operating loss without considering one-time gains from last year?
How much was the operating loss without considering one-time gains from last year?
Excluding a one-time gain of S$19.6 million from the sale of mandatory convertible bonds and properties last year, the group's operating loss was S$19.9 million.
Q.What is the company's outlook on future trading conditions?
What is the company's outlook on future trading conditions?
FJ Benjamin expects the trading environment to remain challenging due to an uncertain economic slowdown in its main markets. However, it believes restructuring losses are unlikely to recur.