Home / Knowledge / News / Apparel/Garments / Brandix Textile subsidiary sales decline
Brandix Textile subsidiary sales decline
09
Jan '08
A continuation of the lean patch experienced by the customers of our subsidiary Brandix Textile, in the US and UK markets, has continued to adversely impact the performance of the company in 2nd quarter as well.

The revenue for the six months dropped by 11%, though in comparison to the 1st quarter the drop in revenue during the 2nd quarter has been a marginal 1%.

The main reason for this decline is due to the drop in prices and orders of key customers which resulted in a drop in average order sizes.

The adverse impact on revenue affected the gross profit and operating margins of the company which resulted in a decline in gross profit by 56% for the six month period, compared to the corresponding period of the previous year.

Although the company achieved a significant cost saving of over LKR 60mn through the coal power plant becoming operational, this could not be translated into higher profits due to the drop in turnover, which resulted in a drop in net profit for the year.

As pointed out in the last investor report, Company focused on capturing new customers, to off set the negative impact due to the lean patch experienced by our main customers.

This strategy resulted in a short term increase in Sales, marketing and sample costs during the year. The company recorded an operating loss of LKR 43.1mn for the past 6 months. The net loss recorded for the six months ended 30th September 2007 was Rs.75mn.

On the other hand the gearing has come down to 12.5% when compared to the last years 20% as a result of settling the term loans amounting to LKR 36mn during the 6 months period. This has also resulted in the finance costs declining by 36% causing less strain on the bottom line.


Must ReadView All

Textiles | On 29th Jun 2017

Nan Ya files trade petition in US against Korea & Taiwan

Nan Ya Plastics Corporation, America, a US synthetic fibre producer,...

Textiles | On 29th Jun 2017

Indian textile industry will reach new milestone by 2020

By 2020, textile technologies will be highly advanced not only with...

Apparel/Garments | On 29th Jun 2017

Amazon intends to keep investing and growing in India

American online retail giant Amazon intends to keep investing and...

Interviews View All

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
July 2017

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X