Hong Kong's Texwinca Holdings revenue at HK$6,059 mn in FY23

20 Jun '23

2 min read

Pic: Texwinca Holdings

Insights

Texwinca Holdings reported a 24.7 per cent decrease in FY23 revenue to $774.33 million.
The textile business saw a 22.5 per cent drop in turnover, while retail sales fell to 29.1 per cent of total turnover.
The company's turnover and gross profit margin of retail operation in Hong Kong increased by 14 per cent and 4.7 per cent, respectively, during FY23.

Texwinca Holdings Limited, a multinational corporation operating in textile and retail sectors, has reported a decrease in revenues for financial year 2023 (FY23), ended on March 31, 2023. The group's total revenue fell by 24.7 per cent to HK$6,059 million (approximately $774.33 million) from HK$8,043 million in the previous year. The group's gross profit margin stood at 25.9 per cent, down 3.1 percentage points from the previous year's 29 per cent.

In the textile business, turnover decreased by 22.5 per cent to HK$4,297 million, down from HK$5,544 million in 2022. Despite the easing of the COVID-19 pandemic, the company cited the impact of rising interest rates used to combat high inflation, which adversely affected the stuttering economy and reduced market demand.

Meanwhile, sales from the retail and distribution business amounted to HK$1,761 million, down from HK$2,496 million in the previous year, accounting for 29.1 per cent of the group's total turnover. The gross profit margin for this sector slightly decreased from 45.3 per cent in 2022 to 44.9 per cent, the company said in a press release.

In mainland China, Texwinca adopted a strategic reduction of its retail network, closing down 267 self-opened shops, equivalent to 26.9 per cent of the total, to control operating costs. Simultaneously, the group expanded its online sales, consignment sales, and franchising business.

The company’s turnover and gross profit margin of retail operation in Hong Kong increased by 14 per cent and 4.7 per cent, respectively, during FY23 compared to the last fiscal year.

Fibre2Fashion News Desk (DP)