HONG KONG: Strong sales lift Bosideng FY profit by 13%
- FY profit climbed 12.6% to CNY1,436.6m (US$226m)
- Revenue rose 19.0% to CNY8,376.1m
- Gross profit margin up to 50.0%
Clothing company Bosideng International Holdings Limited, has reported a 12.6% jump in full-year profit thanks to growth from both its down and non-down apparel businesses.
China's largest producer of down apparel today (28 June) said profit climbed to CNY1,436.6m (US$226m) in the year to 31 March. The Group also operates 10,016 retail outlets.
Revenue rose 19.0% to CNY8,376.1m, up from CNY7,037.8m a year earlier. Growth was driven by expansion of the non-down apparel business, which saw sales jump 128.6% to RMB1,347.2m or 16.1% of the total.
The branded down apparel business - which includes Bosideng, Snow Flying, Kangbo, and Bengen - remained the largest revenue contributor, with annual sales rising 7.7% to CNY6,119.5m or 73.1% of the group's total.
Prepayments to secure raw materials and processing costs offset higher production and operating costs and contributed to a 3.1 percentage point rise in gross profit margin to 50.0%.
Looking ahead, chairman and CEO Gao Dekang said he expects 2012 to be "an interesting year," with rising domestic consumption meaning "room for growth in the apparel market is still substantial for strong and well-positioned brands."
As well as stepping up its marketing efforts, the company plans to enhance its research, design and development capabilities to bring more innovative and stylish products to its consumers.
It will also "acquire more men's wear and ladies' wear brands with good potential to cater to consumers looking for high quality products in all seasons, so as to transform Bosideng into an internationally well-known multi-brand apparel operator creating higher value and return for our shareholders," Mr Gao continued.
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