Revenues at Pacific Textiles surge 22.1%
Today, Hong Kong-based Pacific Textiles Holdings Ltd released its annual report for financial year 2010-11. Across all its markets, the successful execution of its effective business strategy resulted in consistent satisfactory financial outcomes.
In the financial year under consideration, Pacific Textiles achieved revenue of HK $7,180.7 million, representing an increase of 22.1% as compared to the previous financial year, when it stood at HK $5,883.4 million.
The revenue increase was primarily due to the production capacity expansion and increase in average selling price which was driven by the high yarn cost and sales mix. Its sales volume rose 6.8%, whereas its average selling price improved by 14.3% to HK $34.4 per pound.
Operating profit and gross profit reached HK $1,095.9 million and HK $1,290.0 million respectively, representing a year-on-year increase of 13.1% and 5.6% respectively. Gross profit margin and operating profit margin were 18.0% and 15.3% respectively.
For the year under review, net profit attributable to equity holders of the company was HK $876.4 million, which represents a modest increase of 9.1% over the previous year. Net profit margin was 12.2% against 13.7% in the previous financial year.
During the year, surging oil and commodity prices created upward price pressure for yarns and other raw materials. The advancement in the value of the Renminbi also increased its cost. In view of this, Pacific Textiles continued to scrutinize production and operation cost carefully, to mitigate the cost pressure and maintain its competitiveness.
With the improved operational efficiency and enhanced production scheduling, Pacific managed to reduce customers' claims for late delivery significantly. As a result, its distribution and selling expenses fell 32.6%. As a percentage of total revenue, distribution and selling expenses declined from 2.3% to 1.3% during the financial year.
Structural improvement works to expand production capacity were carried out in its factory in Panyu - China. The newly added infrastructure and advanced machinery helped contribute to an increase in operational efficiency and cost effectiveness. Improvements in dyeing machines and water treatment facilities were made.
In its pursuit of setting best environmental practices, the Panyu plant received a accredited “Environmentally Trustworthy Enterprise-Green Label” from the Guangdong Environmental Protection Bureau and the Certificate of Merit was awarded by the Environmental Campaign Committee, Hong Kong for environmental excellence.
In addition, Pacific Textiles is the first textile entity in China to be awarded the Certificate of Registration issued by BSI (China) on meeting the Energy Management System GB/T 23331. It has also Greenhouse Gases Emissions Verification Statement from BSI (China) for meeting the principals set out in ISO 14064.
Pacific Textiles Ltd is a leading manufacturer of customized knitted fabrics in textile industry. It has collaborated closely with apparel brand owners to design fabrics that meet customized order particulars. Its finished fabrics comprise more than 5,000 designs and specifications to sell to the global market. The fabrics are used in a broad range of garments, including men's, women's and children' clothing, sportswear, swimwear and inner-wear.
Fibre2fashion News Desk - India