Bonia’s earnings almost double in fourth quarter
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.