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Quarterly Report For The Financial Period Ended 30 June 2017

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Unaudited Interim Financial Report For The Quarter Ended 30 June 2017
Condensed Consolidated Statement Of Comprehensive Income

Condensed Consolidated Statement Of Comprehensive Income

Unaudited Interim Financial Report For The Quarter Ended 30 June 2017
Condensed Consolidated Statement Of Financial Position

Condensed Consolidated Statement Of Financial Position

Review of Performance of the Company and its Subsidiaries

4Q17 vs 4Q16

For the current quarter, the Group reported a 44.0% increase in profit before taxation ("PBT") of RM12.33 million as compared to the PBT of RM8.56 million reported in the previous corresponding quarter.

The revenue dropped 4.0% to RM153.38 million from RM159.83 million in the same period of last year. However, the improvement in gross profit margin ("GPM") had resulted the gross profit increased by 4.4% for the current quarter under review. The Group has adjusted its pricing strategy by introducing higher-margin products, reducing discounts given out to customers as compared to last year as well as adjusted the prices for new product ranges, in particularly for Bonia and Braun Buffel brands.

The higher PBT achieved also due to lower fair value adjustments on investment properties of RM238,000 for the current quarter as compared to last year's RM2.66 million

4Q17 YTD vs 4Q16 YTD

For the 12 months FY2017, the Group's revenue decreased by RM52.28 million or 7.9% as compared to the corresponding cumulative quarters in the preceding year. In view of the fragile consumer spendings and softening retail environment, the Group has embarked on a series of consolidation and rationalisation process by closing down of a number of non-performing boutiques and consignment counters, in particularly for licensed brands, be more selective on store openings as well as improve productivity. This has caused the revenue dropped by 7.9% which is within our expectation.

Despite the decrease in revenue, the Group posted an improved PBT of RM56.17 million, which is 24.6% higher than the PBT of RM45.09 million reported in the preceding year. The earnings increased was mainly due to improvement in GPM and the Group's continuous efforts in controlling its operating cost. The Group has also embarked on rationalisation process in disposing non-core assets, as well as making provisions and fair value adjustments on investment properties.

The followings are the financial effects arising from the Group's consolidation and rationalisation process of which are non-recurring in nature :-

review of performance

Excluding the above non-recurring items, the Group would have recorded a PBT of RM58.36 million (2016: RM50.38 million), representing an increase of 15.8%.


The retail sector has becoming more challenging due to rising costs of doing business, weakened Ringgit has driven up the merchandise costs. The rising cost of living and weaken Ringgit has deteriorated the consumer spending power.

In addition, the influx of online marketing has directly or indirectly affected the retail infrastructure. As such, retailers are striving to increase efficiency, reinvent in-store models, offer additional services and investing into digital platform in order to stay relevant in the market place.

Giving the uncertain economic outlook, the Group's prospects for the coming financial year are expected to be challenging. With the continue 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 Group will continue its business consolidation by closing down of non-performing outlets, improve gross margins by improving the sourcing of products and continue to reorganizing its retail operations and brand positioning to increase efficiency and productivity.

Moving forward, the Group 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, in particularly Indonesia, Vietnam and some Middle East countries.