Fabric and clothing maker Novel Denim Holdings Limited saw its net sales decrease by 12.5 per cent to $32.8 million in the second quarter, down from $37.5m in the same period last year.

The company, a leading supplier of denim and chino garments to Europe and the United States, also saw garment sales decrease by 14 per cent to $16.7 million, compared to $19.4 million for the same period a year earlier.

Third party fabric revenues decreased by 10.6 per cent to $16.1 million year-on-year, down from $18.0 million.

"During the past quarter we achieved betterproduction efficiencies and profitability in our China and Mauritian operations," CEO and president KC Chao said.

"Unfortunately, our new South African garment factory and existing South African fabric operations continued as loss-making divisions and are performing below expectation, partially due to increased costs resulting from the appreciation of the South African rand versus the US dollar."