Grand Twins International (GTI), the only publicly traded garment firm on the Cambodian stock market, reported that profits decreased by over 15 per cent year-on-year during the first six months of 2016 despite a hefty increase in revenue.
In a financial report released yesterday, the Taiwanese-owned garment manufacturer reported that revenue increased to $42 million during the first half of 2016, a 44 per cent increase compared to $29 million for the same period a year earlier. Meanwhile, total profits declined to $3.6 million during the period, from $4.3 million a year earlier.
GTI did not respond to requests for comment yesterday.
However, the company’s unaudited financial report showed that costs of sales – a breakdown of labour, materials and overheads – swelled to $37 million in the first half of 2016, compared to $21 million a year before.
The bulk of the costs went to materials, which increased $10 million, while labour costs were nearly an additional $2 million compared to the previous year.Distribution costs also grew during the first half of the year to $1 million, from $635,906 a year earlier.
Henry Chan, GTI’s chief financial officer, previously told the Post that distribution costs would likely go up for the company whose primary customer is German sportswear giant Adidas, as it shifts toward air freight to ensure the completion of orders.
The report also showed that the company invested $2.4 million into purchasing property and equipment, as well as making a $1.5 million repayment on debt.
The company’s second-quarter earnings were more subdued compared to its first-quarter financial report, which showed profits soaring 157 per cent to $1.6 million, from just $628,000 a year earlier.
GTI is owned by QMI Industrial Co Ltd, a British Virgin Islands-registered holding company.