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Koda reports rise in gross profit margin after streamlining operations
IN a business update announcement, design manufacturer Koda Limited said that its gross profit margin has risen to 27.7 per cent in FY2016 from 23.6 per cent in FY2014.
On Monday, 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 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.
Koda said that the US market, which accounts for more than 30 per cent of total revenue in FY2016, will remain the key focus for the group's exports. "While the group is mindful of the recent political developments in the US, the improving outlook on job creation and housing recovery is expected to sustain sales there," it said.