Bonia Q1 results hit by lower revenue, higher expenses and absence of gains

PETALING JAYA: Bonia Corp Bhd’s net profit for the first quarter ended Sept 30, 2017 plunged 83.8% to RM1.32 million from RM8.15 million a year ago due to lower revenue and an increase in overall selling and distribution expenses.

In a filing with Bursa Malaysia yesterday, Bonia said the previous year’s corresponding quarter included a gain on disposal of property amounting to RM3 million and unrealised foreign exchange gain of RM1.1 million.

Revenue for the quarter fell 13.34% to RM118.88 million from RM137.18 million a year ago due to the absence of Hari Raya festive sales in the Malaysian and Indonesian markets.

The manufacturing segment’s revenue fell 56.2% due to a decline in the domestic market.

The investment and property development segment’s revenue jumped 130.1% due to rental of investment properties owned by the group. However, operating profit fell to RM250,000 from RM300,000 a year ago due to higher general and administration expenses.

The group said its prospects for the financial year ending June 30, 2018 are expected to be challenging due to the uncertain economic outlook.

The group will also continue its business consolidation by closing down non-performing outlets, boosting gross margins by improving the sourcing of products and continuing to reorganise its retail operations.