Posted by Jimmy Song > 2014-05-29 20:15 | Report Abuse

ASIA BRANDS DELIVERS LEAP IN EARNINGS 74% increase in net profit to RM30 million for FY2014 PETALING JAYA, 29 MAY 2014–Asia Brands Berhad (“Asia Brands” or the “Group”) announced its fourth quarter results for its financial year ended 31 March 2014 (Q4FY2014) with a revenue of RM76.7 million, 8% lower as compared to RM83.7 million in the last quarter (“Q3FY2014”) mainly due to seasonal fluctuations in sales. However, the Group’s net profit for Q4FY2014 increased to RM7.1 million as compared to RM6.8 million in the preceding quarter.The improved bottom-line was mainly due to the significant cost reduction measures taken by the Group as well as the Group’s ability to capitalise on economies of scale. For the financial year ended 31 March 2014 (“FY2014”), the Group delivered a staggering 70% leap in revenue to RM320 million as compared to RM189 million in the previous financial year (“FY2013”). The Group’s gross margins have also improved year-on-year from 47% in FY2013 to 52% in FY2014. The increased revenue and improved gross margins were attributed to the consolidation of its new subsidiary companies that were acquired from Asia Brands Corporation Berhad in December 2012. During FY2014, the Group also had an one-off gain from the disposal of its non-core assets as part of its efforts to streamline its balance sheet. As a result, the Group’s net profit increased from RM17.4 million in FY2013 to RM30.2 million in FY2014. “FY2014 was a year of consolidation for the Group. We are pleased with the results and we believe that we are heading in the right direction. We will continue to streamline our operations to maximise efficiency and earnings in order to remain competitive and keep our eyes on our vision of becoming a leading brand conglomerate.” commented Mr. Cheah Yong Hock, Chief Executive Officer.