Bonia 4Q profit up 74% to RM9.2 mil, declares 1.25 sen dividend

by **Cals** Fri 29 Aug 2014, 00:44

Business & Markets 2014

Written by Kamarul Anwar of theedgemalaysia.com

Thursday, 28 August 2014 21:57

KUALA LUMPUR (Aug 28): Bonia Corp Bhd’s net profit for the fourth quarter ended June 30, 2014 (4QFY14) rose 74.16% to RM9.19 million, from RM5.28 million the previous corresponding quarter, on the back of higher sales plus lower selling and distribution expenses, finance costs, and taxation.

The retailer’s filing with Bursa Malaysia showed a 7.23% increase in the quarter’s revenue to RM165.86 million, from a year ago.

Bonia also declared a final single tier dividend of 1.25 sen per share.

For the full financial year ended June 30, 2014 (FY14), Bonia’s net profit rose 33.98% to RM55.398 million or 6.87 sen per share, from RM41.35 million or 5.13 sen per share a year ago.

Bonia’s revenue meanwhile grew 9.38% to RM691.61 million, from RM632.32 million in FY13.

“The commendable results were attributed to higher sales generated, as well as better control of operating expenses. During FY14, the group incurred lesser renovation and set up costs in Indonesia and Vietnam, which amounted to RM1.4 million as compared to the preceding financial year of RM9.8 million.

"As a result, the operating expenses for the quarters under review increased at a moderate rate of 8.8%, as compared to 9% increase in revenue,” Bonia said.

Bonia also said the increased revenue was due to better sales contribution from Jeco (Pte) Ltd, which saw a 33% increase year-on-year, while other licensed brands saw a 21% increase.

“Jeco had reported better sales, derived from its export to Indonesia and boutiques sales in Singapore and Malaysia. The openings of Renoma and Santa Barbara Polo & Racquet Club boutiques have contributed positively to the licensed brands’ increase in revenue,” Bonia added.

Additionally, Bonia said its expansion plans in Indonesia and Vietnam had resulted in increased sales, and contributed 20% to the total increase in the group’s revenue.

However, with Malaysia’s economy expected to slow down in the second half of 2014 — due to moderating exports growth, rising inflation and debt levels — Bonia said its prospects for FY15 are expected to be challenging.

“The group will continue to focus on its expansion plan to overseas markets, in particularly Indonesia and Cambodia,” Bonia added.

Nonetheless, Bonia said it expects a positive performance in FY15, although the growth will come at a slower pace.