Garment company’s profits plummet
Garment company’s profits plummet
After posting low to moderate profits for the first three quarters of last year, Grand Twins International (GTI) – Cambodia’s only publicly listed garment firm – saw a whopping 450 per cent drop in profits for the last quarter of 2015, compared to the same period a year earlier.
In a quarterly report released yesterday, the Taiwanese garment firm reported a loss of $3.63 million for the October to December period, compared to the $1.03 million profit it posted in the last quarter of 2014.
The firm’s profits dropped dramatically despite revenues for the quarter increasing to $18.4 million, up 39 per cent from 2014.
The company did not respond to requests for comment yesterday. However, its financial report shows a more than doubling in the cost of sales for the quarter, with a break up indicating a 151 per cent increase in direct material costs, as well as increases in labour costs and overheads.
While the garment manufacturer was poised for healthy annual profits at the end of the third quarter, profits after tax for the entire year was $1.06 million, down from $3.4 million posted in 2014. Revenues for the year were also flat, registering a meagre 0.30 per cent increase in 2015.
Lower profits in the last quarter meant the firm’s earning per share dropped to $0.03 for 2015, compared to the $0.11 per share in 2014.
Despite the poor performance last quarter, the firms share price on the Cambodia Securities Exchange remained unchanged yesterday at 4,800 riel (about $1.20).
