| ANNUAL REPORT 2015
36
CHAIRMAN’S STATEMENT
FY2015 was a challenging year for
the retail industry and our Group,
especially during the last quarter of
FY2015 which seasonally weakest
quarter of the Group due to absence of
any festivities. Our Malaysia operations
suffered a drastic dropped of sales for
the last quarter of FY2015 by 14 % as
compared to same quarter of previous
year. For full year, sales dropped by
2% after excluding the one-off sales
of our consignment to Indonesia and
Vietnam amounting to RM12.3 million.
Our same store sales growth (SSSG)
for Malaysia full year-on-year was -2%
with boutiques and counters registered
-2% and -1% respectively. Sales were
badly affected as shopping traffic had
dropped in shopping centres for the
first three months after GST. Generally,
consumer had been holding back on
their purchases to observe the price
movement of retail goods and services.
They were also waiting for more
promotion holds by retailers. During
the first two weeks of Ramadhan, our
sales were slowed but picked up when
approaching Hari Raya, but it was not as
good as last year.
Our full year earnings were dragged
down due to intensive promotion
activities and higher discount given to
drive sales pre-GST as well as absorption
of 6% GST without price increase post-
GST. Unprofitable retail stores in certain
high rental boutiques and higher
operating costs also contributed to the
drop in earnings.
In spite of the weakened results in
Malaysia, our Singapore operations
managed to achieve a slight increase
in revenue of 0.8% to RM175.4 million
mainly due to better contribution
from the newly opened BONIA store
in Westgate and existing Braun Büffel
stores in Westgate and ION Orchard.
Revenue from our Vietnam operations
rose 34.8% to RM27.7 million, while
revenue from Indonesia operations by
35.7% to RM29.6 million.
Stand-alone
Boutique
Consignment
Counters
Total
Malaysia
114
1,041
1,155
Singapore
17
75
92
Indonesia
7
71
78
Vietnam
13
40
53
Saudi Arabia / Middle East
15
-
15
Cambodia / Myanmar
6
9
15
Total
172
1,236
1,408
NUMBER OF STORES BY COUNTRY AND FORMAT
Moving forward, the Group will
continue
to
undertake
more
promotional activities as part of the
stock rationalization program and to
boost our topline. The Group will also try
to maintain its profit margin by closure
of non-profitable stores and more
selective in store openings.
FINANCIAL PERFORMANCE
TheGroup’s revenue for thefinancial year
ended on 30 June 2015 has increased
by RM3.7 million to RM695.3 million as
compared to the preceding year, out
of which RM12.3 million was due to a
one-off sales of consignment stock to
our Dealers in Vietnam and Indonesia
amounting to RM5.4 million and RM6.9
million respectively. Excluding the one-
off sales of consignment stock, there
was a drop in sales of RM8.6 million or
1.2% as compared to last financial year.
The lower in revenue for the financial
year ended on 30 June 2015 were due to
the weak revenue from the last quarter
The Group’s revenue for the financial year
ended on 30 June 2015 has increased by
RM3.7 million
to
RM695.3 million
