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 6th Dec 2016

Alibaba merges Juhuasuan with Tmall.com

In a business reorganisation, aimed at making it easier for merchants ...

Courtesy: EFI Reggiani

Textiles | On 6th Dec 2016

EFI Reggiani shows inkjet textile solutions at India ITME

EFI Reggiani, a leading technology provider of a full range of...

Textiles | On 6th Dec 2016

Indonesian textile sector urges govt to regulate imports

The Indonesian textile industry urged its government to regulate...

Interviews View All

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Kevin Nelson
TissueGen

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

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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
December 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search