GTI posts 15% drop in Q1 revenue
GTI posts 15% drop in Q1 revenue
Listed Taiwanese-owned garment manufacturer Grand Twins International (Cambodia) Plc (GTI) reported a sharp decline in revenue in the first quarter of this year, citing Covid-19-induced disruptions to their exports and supply chain.
In a filing to the Cambodia Securities Exchange (CSX), GTI said its revenue dropped to 124.6 billion riel ($30.37 million) in the first quarter, down 15.29 per cent from 147.1 billion on a yearly basis.
But offering a silver lining, CSX vice-chairman Ha Jong-weon told The Post that GTI’s profits did not decline as much.
“As Covid-19 prolongs, it’ll affects almost every industry – not only garments. On the other hand, GTI still managed to make it out with just a 10 per cent drop in profit. This is not critically bad and investors should not overplay it,” he said, adding that investors should not ignore the fact either.
The Prakas on Corporate Disclosure stipulates that listed company with total shareholder’s equity of more than $7.5 million must make a timely disclosure to investors if there is an increase/decrease in revenue, operating profit/loss, or net profit/loss of at least 15 per cent in a quarter on yearly basis or in a financial year.
Ha added: “GTI is complying with the regulation but that would not be enough. The company had better share with shareholders and investors their future strategic plan to implement in response to the pandemic in order to gain trust and confidence in their future business performance. That will help its stock price and trading in the market.”
Cambodia’s garment, footwear and travel goods sectors have been ravaged by Covid-19, which has heavily weighed on their global supply prospects and put production on hold.
Garment Manufacturers Association in Cambodia data show that 450 garment and footwear factories in Cambodia suspended work while 83 factories closed in the first half of this year. This has affected about 150,000 workers.
