Bo­nia’s earn­ings al­most dou­ble in fourth quar­ter

The Sun (Malaysia) - - SUNBIZ -

PETALING JAYA: Bo­nia Corp Bhd’s net profit for the fourth quar­ter ended June 30, 2017 al­most dou­bled af­ter the group ad­justed its pric­ing strat­egy, and in­tro­duced higher mar­gin prod­ucts and re­duc­ing dis­counts.

The group made a net profit of RM7.7 mil­lion for the quar­ter, com­pared with RM3.8 mil­lion.

This was on marginally lower rev­enue of RM153.4 mil­lion for the quar­ter un­der re­view, com­pared with RM159.8 mil­lion for the quar­ter ended June 30, 2016.

The group ex­pects its prospects for the fi­nan­cial year end­ing June 30, 2018 to be chal­leng­ing with ris­ing cost of living, weak­en­ing ring­git and the in­flux of on­line mar­ket­ing which has di­rectly or in­di­rectly af­fected the re­tail in­fra­struc­ture.

“With the con­tin­ued in­crease in im­ported mer­chan­dise costs due to the weak­ened ring­git, the group will con­tinue to mon­i­tor its op­er­at­ing costs and cau­tiously ad­just its sell­ing price to cope with ris­ing cost of op­er­a­tion,” the board told Bursa Malaysia.

It said it will also con­tinue its busi­ness con­sol­i­da­tion by clos­ing down non-per­form­ing out­lets, im­prove gross mar­gins by im­prov­ing the sourc­ing of prod­ucts and con­tinue to re­or­gan­ise its re­tail op­er­a­tions and brand po­si­tion­ing to in­crease ef­fi­ciency and pro­duc­tiv­ity.

Mov­ing for­ward, the group said it will fo­cus and chan­nel the re­sources on house brands namely, Bo­nia, Braun Buf­fel, Carlo Rino and Sem­bo­nia, con­sol­i­date and im­prove the per­for­mance of its li­censed brands, con­tinue to de­velop and strengthen its overseas mar­kets, par­tic­u­larly In­done­sia, Viet­nam and some Mid­dle East coun­tries.

Net profit for the 12 month pe­riod was 30% at RM31.7 mil­lion, com­pared with RM24.4 mil­lion for the same pe­riod in 2016.

This was on slightly lower rev­enue of RM613.2 mil­lion, com­pared with RM665.4 mil­lion for the fi­nan­cial year ended June 30, 2016.

Bo­nia’s share price was down half a sen to 56.5 sen yes­ter­day, with some 582,200 shares chang­ing hands. It has a mar­ket cap­i­tal­i­sa­tion of RM455.2 mil­lion.

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