Bonia: Promotion drives, closure of loss-making boutiques will improve results

KUALA LUMPUR: Attire manufacturer and retailer Bonia Corp Bhd expects continuous advertising and promotional (A&P) activities as well as the closing of its loss-making boutiques to improve its performance in financial year 2017.

Group managing director Datuk Albert Chiang said the company has allocated between 5% and 7% of revenue for A&P programmes.

“For the last one year, we have been actively pursuing A&P activities through social media as it gives faster impact to the campaign,” he told Bernama after the company’s AGM here yesterday.

For the financial year ended June 30, 2016, Bonia’s pre-tax profit fell to RM45.93 million from RM72.70 million in the same period last year.

Its revenue declined to RM665.43 million from RM695.32 million previously.

The weaker performance was mainly attributed to sluggish performance from Malaysia and Singapore businesses due to adverse global economic uncertainty, currency volatility and weak consumer sentiment.

Chiang said apart from A&P campaigns, the company has closed loss-making boutiques to improve its performance.

Ten boutiques were closed in financial year 2016, he said, adding that they were licensed brand boutiques and not the company’s own brand outlets.

Chiang said the company will continue to undertake prudent measures and be selective on store openings.

Apart from Malaysia and Singapore, Bonia has operations in Indonesia, Vietnam, Cambodia and Myanmar through its flagship fashion label Bonia as well as Sembonia and Carlo Rino.

It holds the licence to distribute international labels including Santa Barbara Polo & Racquet Club, Jeep, Braun Buffel and Pierre Cardin, through its network of over 1,400 sales outlets, including 185 standalone boutiques, in the region.