Update Bonia 3Q profit surges 95% y-o-y to RM13m

Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Monday, 27 May 2013 15:15
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KUALA LUMPUR (May 27): Clothing manufacturer and retailer Bonia
Corp Bhd saw a 94.75% rise in its third quarter net profit from a year
earlier on higher revenue.
In a filing with Bursa Malaysia, Bonia said net profit for its third quarter
ended March 31, 2013 (3QFY13) was RM13.03 million. Revenue for
3QFY13 came to RM154.03 million.
A year earlier, the company made a net profit of RM6.69 million on the
back of RM137.91 million in revenue.
While Bonia made a year-on-year leap in net profit, cumulative 9MFY13
net profit fell 9.63% to RM36.07 million against RM39.91 million a year
earlier.
However, revenue rose 8.16% to RM477.64 million from RM441.61
million.
“The (revenue) growth was driven by better contribution from overseas
sales mainly from Indonesia and Vietnam which contributed 34% of the
increase in revenue as well as improved performance from Carlo Rino
and Sembonia brands which contributed 26% and 28% of the increase
in revenue respectively.
“However, revenue generated from the new stores especially from
overseas have been slower than expected, thus, affecting the
profitability of the group. The implementation of minimum wage policy in Malaysia and Indonesia which came into effect on
January 1 this year had also resulted in rising cost of doing business.” Bonia said.
Bonia said 9MFY13 net profit was lower on higher expenses for staff salary and the group's expansion plans in Indonesia and
Vietnam.
This was compounded by lower profitability from its Singapore subsidiaries.
“The business expansion plan has resulted in high initial investment costs incurred for renovation, advertising and promotion,
rental and set up,” Bonia said.
The company said it is positive towards its growth prospect for the remaining months of the financial year. This is despite the
brunt of minimum wage, rising costs, new government policies and manpower shortage.
“The group will continue to explore new business opportunities prudently, locally and overseas, especially in the Middle East
and South East Asia. The group has started its new expansion plans and operating strategy in Indonesia and Vietnam during
the year.
"In Indonesia and Vietnam, our rapid expansions plan has yielded positively with a revenue growth of 164% compared to
previous year,” Bonia said.
Bonia shares rose 4% or seven sen to RM2.06 at 2.57pm. This compares to its latest net asset per share of RM1.47.