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F J Benjamin returns to profitability in FY2019
RETAILER F J Benjamin Holdings returned to profitability in FY2019 after a sustained period of restructuring, with a net profit of S$177,000, compared to net loss of S$1.24 million in FY2018.
Revenue for the full year ended June 30 declined 21 per cent year-on-year to S$131.5 million from S$166 million. This was partly due to a S$29.3 million reduction in revenue from closing unprofitable businesses in FY2018. The group's Indonesian associate also slowed down purchases, resulting in a S$4.4 million reduction in sales.
Earnings per share was 0.02 Singapore cent, compared to loss per share of 0.18 Singapore cent a year ago.
Thanks to better cost controls and the closure of non-performing stores and brands, group operating expenses fell 19 per cent to S$60.7 million, yielding savings of S$13.9 million. Gross profit margin improved to 49 per cent from 46 per cent.
"We are pleased to return to profitability after the restructuring of our business, and believe that we have today a much healthier portfolio of brands," said group CEO Nash Benjamin.
He added that the group will be vigilant in managing costs and inventory, due to global uncertainties. Barring unforeseen circumstances, and continuing with the actions the group has taken so far, F J Benjamin should be able to maintain its present pace of recovery, he said.
The counter closed flat at 2.9 Singapore cents on Wednesday.