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

The Sun (Malaysia) - - SUNBIZ -

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.

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