Overview
Apparel manufacturer's H1 revenue fell 47.6% yr/yr on lower orders from key markets
Gross profit dropped 98.3% and company reported net loss for the half-year
Lower production utilization and efficiency contributed to weaker results
Outlook
Company says global apparel market conditions remain challenging with geopolitical tensions and cautious sentiment
KTMG plans to improve capacity utilisation and operational efficiency in response to uncertain market conditions
Result Drivers
LOWER APPAREL ORDERS - Co said revenue decline was mainly due to reduced orders from existing customers in the US, EU, Japan, and Canada amid geopolitical tensions and uncertain trade policies
LOWER UTILISATION AND EFFICIENCY - Co attributed lower gross profit margin to reduced production utilization and operational efficiency at its manufacturing plants
Company press release:
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
S$15.91 mln
H1 Net Loss Attributable
S$2.93 mln
H1 Pretax Loss
S$2.91 mln
Reuters Recommended Reads
Aug 6 - South African clothing factories struggle after migrant workers flee
Aug 4 - Mattel swings to Q2 net loss as tariffs, inflation squeeze margins despite higher sales
Aug 4 - Hugo Boss beats Q2 profit estimates, maintains annual guidance
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