SINGAPORE (Aug 29): Furniture manufacturer Koda reported FY19 earnings of US$5.3 million ($7.4 million), down 1.9% compared to US$5.4 million in FY18.
This was despite a 10.5% increase in revenue to US$57.9 million from US$52.4 million last year, led by higher export sales to the group’s key markets.
Cost of sales however rose 17.3% y-o-y to US$39.6 million, mainly due to higher costs of material and labour along with a change in sales mix and research and development costs.
Hence, FY19 gross profit came in 1.9% lower at US$18.2 million from US$18.6 million a year ago.
Selling and distribution expenses fell 7.5% to US$5.0 million, while general and administrative expenses increased 10.9% to US$8.1 million.
As at end June, the group’s cash and cash equivalents stood at US$13.4 million.
Koda’s board has declared a final dividend of 0.75 cents and a special dividend of 1.25 cents.
James Koh, managing director and deputy chairman of Koda, says, “The US-China trade war does not present a short-term negative impact on our manufacturing business, as we do see more sourcing from Vietnam factories like ours for the time being. However, we expect this factor to escalate competition, leading to rising costs over a 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.”
Shares in Koda closed 3.03% lower at 64 cents on Thursday.
