TOMEI RA­TIO­NAL­I­SA­TION EX­ER­CISE CON­TIN­UES

Com­pany to com­plete ra­tio­nal­i­sa­tion ex­er­cise first be­fore mov­ing on to ex­pan­sion

New Straits Times - - Business - ZARINA ZAKARIAH KUALA LUMPUR zari­naz@me­di­aprima.com.my

TOMEI Con­sol­i­dated Bhd, the man­u­fac­turer, re­tailer and dis­trib­u­tor of gold or­na­ments and jew­ellery, will fully carry out the ra­tio­nal­i­sa­tion ex­er­cise be­fore it moves for­ward with its ex­pan­sion plans.

The ra­tio­nal­i­sa­tion plan, ac­cord­ing to man­ag­ing di­rec­tor Datuk Ng Yih Pyng, would in­volve the clo­sure of un­der­per­form­ing out­lets and open­ing of new ones in strate­gic lo­ca­tions.

“Last year, we closed more than 10 out­lets, but we also opened three to four. This year, we will open an out­let in the Gent­ing Pre­mium Out­let and another in Jo­hor,” he said

The capex for both out­lets would be about RM1 mil­lion.

“At this point, the out­lets that we wanted to close have been closed. For those out­lets await­ing a re­newal due date, we will de­cide later,” he said af­ter Tomei’s an­nual gen­eral meet­ing, here, yes­ter­day.

“Cost-wise, the com­pany has been very careful in its spend­ing. I would say that there are not much costs to be cut, but cer­tain pro­cesses need to be im­proved so that less man­power is used.”

The three-year ra­tio­nal­i­sa­tion ex­er­cise, upon its con­clu­sion by the end of the year, will en­able the com­pany to im­ple­ment its ex­pan­sion plans.

On its out­look, Ng said the com­pany ex­pected to do bet­ter than last year.

“The price of gold has been within range this year de­spite some fluc­tu­a­tions but we hope for more sta­ble prices this year.

“De­spite the cur­rent soft re­tail en­vi­ron­ment, Tomei has man­aged to im­prove on its prof­itabil­ity while also em­bark­ing on its ra­tio­nal­i­sa­tion plan.

“We will con­tinue with our strat­egy of cost con­trol and max­imise re­turns from our out­lets to en­sure the sus­tain­abil­ity of our prof­itabil­ity,” he added.

Re­cently, Tomei en­tered into an agree­ment with Shen­zhen Har­mony Batar Jew­ellery Co Ltd for the ex­clu­sive right to dis­trib­ute and re­tail the Xifu jew­ellery col­lec­tion in Malaysia.

The Xifu jew­ellery col­lec­tion, which is owned and trade­marked by the World Gold Coun­cil, is a jew­ellery series that is tai­lored to the global wed­ding mar­ket.

Tomei recorded a RM4.3 mil­lion net profit in its first quar­ter ended March 31, com­pared with RM3.3 mil­lion in the same quar­ter last year.

The Tomei Group has a net­work of more than 60 out­lets in Malaysia.

De­spite the cur­rent soft re­tail en­vi­ron­ment, Tomei has man­aged to im­prove on its prof­itabil­ity while also em­bark­ing on its ra­tio­nal­i­sa­tion plan.

DATUK NG YIH PYNG Tomei Con­sol­i­dated Bhd man­ag­ing di­rec­tor

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.