Friday 29 Mar 2024
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KUALA LUMPUR (Nov 29): Bonia Bhd, whose share price dipped to a three-month low today, saw its net profit shrink 84% to RM1.32 million in its first quarter of financial year 2018 (1QFY18), from RM8.15 million a year ago.

Revenue was down 13% year-on-year to RM118.88 million, from RM137.18 million in 1QFY17. In the previous year's corresponding quarter, it had booked a property disposal gain of RM3 million, and unrealised gains in forex of RM1.1 million.

In a filing with the bourse, the company blamed the double-digit fall in revenue on the Hari Raya festive sales having been brought forward, as well as the absence of a property and foreign exchange (forex) gain.

Notably, its retailing segment, which made up 99% of the group's total revenue, sales declined across Malaysia, Singapore, Indonesia, and Vietnam, while income from overseas sales to other ASEAN and Middle East countries had increased by a marginal 1.3%.

Cumulative retail profit before tax fell to RM3.36 million, from RM14.363 million.

Manufacturing revenue slumped 56%, due to a decline in the domestic market, the filing said, while PBT shrank to RM115,000, from RM145,000. 

As for its investment and property development arm, where revenue came mainly from rental of investment properties owned by the group, revenue jumped 130%, and loss before tax narrowed to RM611,000, from RM778,000.

Going forward, the group said it expects the retail sector to remain challenging, due to rising costs of doing business, more competitive price pressure and weak consumer demand.

“Given the uncertain economic outlook, our prospects for the remaining financial year are expected to be challenging,” Bonia said.

The filing added that the company would continue business consolidation by closing down non-performing outlets and improve gross margins by improving product sourcing. It would also continue to reorganise its retail operations to strengthen brand positioning.

At 2.58pm, Bonia's stock was trading at 55.5 sen, down 2.5 sen or 4%, giving it a market capitalisation of RM447.14 million.

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