Home / Knowledge / News / Textiles / Pacific Textiles sees slight growth in ASP
Pacific Textiles sees slight growth in ASP
29
Dec '09
Pacific Textiles Holdings Limited announced its interim results for the six months ended 30 September 2009.

In the first half of the 2009/2010 financial year, the global economic downturn has shown signs of easing but the operating environment remained challenging for the textile industry. Nevertheless, the Group was able to record notable improvement in both sales and profitability. Revenue grew 18.9% to HK$3,032.9 million over the same period last year, mainly driven by strong volume gains. Total sales volume increased by 17.4% to 100.3 million pounds, attributable to the Group's expanded production capacity, broadened customer base, as well as increased orders from existing clients. The Group also saw a slight growth in average selling price (“ASP”) year-on-year despite strong pricing pressure during the period.

Gross profit jumped 82.1% to HK$616.3 million in virtue of the Group's enhanced operational efficiency, effective cost control measures and expanded manufacturing facilities. The drop in commodity prices also helped improve the Group's gross margin from 13.3% to 20.3% year-on-year. Profit attributable to equity holders of the Group was HK$388.5 million, which represents a significant increase of 113.7%. Net profit margin rose to 12.8% (2008: 7.1%). Basic earnings per share were HK$0.27 (2008: HK$0.13).

The Board of Directors of the Group has declared an interim dividend of HK$0.13 per share (2008: HK$0.03) for the six months ended 30 September 2009.

“Thanks to the Group's enhanced operational efficiency as well as strong financial position, and the industry consolidation which favored more established players, we were able to achieve strong profit growth and better competitive edge despite the challenging business environment as a result of the global financial crisis,” said Mr. Wan Wai Loi, Chairman of Pacific Textiles.

The garment operation and fabric production of the Bangladesh joint venture, which was established in November 2008, are expected to commence in early 2010 and 2011 respectively. Capitalizing on Bangladesh's access to European markets and Japan with no tariffs and quota barriers and its cost effective production capacity and low operating costs, the Group's management believes this initiative will allow the Group to further penetrate into the burgeoning Japan market and extend its presence in other markets.

During the period under review, the Group continued its efforts in expanding its production capacity to meet demand and optimize the utilization of its facilities. Despite the unfavorable market conditions, overall capacity increased slightly over 10% year-on-year, with utilization rate further improved to more than 90%. With the expansion at the plant in Sri Lanka completed in 2008, the Group was able to take full advantage of the increased capacity during the reviewing period.

The Group also continued to improve its operational efficiency through technological reform and constant upgrades of equipment. Critical supporting facilities upgraded or installed at the production plant in Panyu include dyeing machines, power plant, water treatment facilities and a new water recycling plant, to enhance efficiency, allowing lower production cost and at the same time achieving a more environmental friendly production process.


Must ReadView All

Apparel/Garments | On 25th Sep 2017

Vietnam textile sector to gain if EU FTA gets ratified

Experts feel the Vietnam-European Union (EU) free trade agreement...

Prime Minister Narendra Modi dedicating the Deendayal Hastkala Sankul to the nation, in Varanasi, Uttar Pradesh on September 22, 2017. Courtesy: PIB

Textiles | On 25th Sep 2017

Handicrafts trade facilitation centre opens in Varanasi

Prime Minister Narendra Modi dedicated the Deendayal Hastkala Sankul, ...

Apparel/Garments | On 25th Sep 2017

AAFA urges US govt to plug lacunae in military procurement

The American Apparel & Footwear Association (AAFA), an alliance of...

Interviews View All

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Rupa Sood and Sharan Apparao
Nayaab

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

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

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

September 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


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