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Koda's full-year profit shrinks marginally to US$5.3m

FURNITURE maker Koda on Thursday posted a net profit of US$5.3 million for the financial year ended June 30, down 1.9 per cent from US$5.4 million a year ago.

Revenue grew 10.5 per cent to US$57.9 million on higher sales from key export markets, while cost of sales rose due to increased costs of material and labour, as well as a change in sales mix and research and development costs.

Earnings per share was 6.44 US cents, down from restated earnings per share of 8.01 US cents for the previous year.

Koda declared a final dividend of 0.75 Singapore cent and a special final dividend of 1.25 Singapore cents for the year. For FY2018, it issued a final dividend of 0.75 Singapore cent and special dividend of 0.75 Singapore cent.

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Koda said its planned rollout of 100 Commune stores by 2020 is on track, and the group will continue to focus on supply chain management and improving manufacturing efficiency.

Koda managing director and deputy chairman James Koh said the manufacturing business is not negatively affected by the US-China trade war in the short term, as it sources mainly from Vietnam factories. However, Koda expects the tariff dispute to escalate competition and lead to higher costs over the longer term.

"In view of these potential headwinds, we intend to integrate our supply chain more effectively with other sub-contracting networks, so as to expand our eco-system beyond our existing facilities in Malaysia and Vietnam," said Mr Koh.

Koda shares closed at S$0.640 on Thursday, down two Singapore cents or 3.03 per cent.