In a business update on its activities and plans for the immediate future, KODA Limited said its gross profit margin has risen to 27.7 per cent in FY2016 from 23.6 per cent in FY2014.
The company said that it has streamlined its operations since the 2008 global financial crisis by consolidating production facilities in Vietnam, relocating factories out of China, disposing the loss-making retail business in Vietnam, and disposing of certain non-core assets for cash.
As a result of the revised business strategies and operational restructuring, the group reported a net profit of US$1.6 million for the fiscal year ended June 30, 2016, reversing losses in FY2014 and FY2015.
The group additionally expects both the original design manufacturer and Commune business to improve over the next few years.
It also said it has set its target to increase the number of Commune’s DR stores in China to 100 by FY2020, to support this growth, the Group is assessing the feasibility of establishing a supply hub in Eastern China and plans to add at least eight stores in other parts of Asia by FY2020.
It expects the production capabilities of the Malaysia and Vietnam facilities to perform better towards FY2020.
Taking into account the results for 9M2017 and barring unforeseen circumstances, Net Profit for FY2017 is expected to exceed that of FY2016.
It said it will declare a final dividend for FY2017 in addition to the interim dividend of 0.50 Singapore cent per share (pre-bonus issue).
The Group expects to release its unaudited results for FY2017 at the end of August 2017 said James Koh Jyh Gang Deputy Chairman and Managing Director.