Académique Documents
Professionnel Documents
Culture Documents
For the three months ended 31 March (“3Q10”) – Koda’s seasonally weakest quarter –
revenue grew 46.6% year-on-year to US$9.5 million on higher sales to US while gross
profit rose 42.3% to US$2.4 million from US$1.7 million. This was Koda’s third
consecutive quarter of growth compared to each correspondence period of reporting. The
Group’s 3Q10 top-line performance helped narrow the Group’s year-on-year loss to
US$0.49 million from a 3Q09 net loss of US$0.96 million on revenue of US$6.5 million.
In its 2Q and 1H10 results announcements Koda had cautioned investors about the
weakest 3Q and the possible fall in revenue compared to 2Q due to shorter production
days in the quarter.
However, Koda firmly believes that the results indicate an improving economy condition
in the US but caution on the continually weak demand from the EU given the possible
chain-reaction from the Greek debt crisis (possibly Spanish and Portuguese as well) .
The Group continues to remain in a financially strong position with cash balances of
almost US$4.3 million as at 31 March 2010. Net gearing remained relatively low at
approximately 0.11 times at 31 March 2010. Koda generated positive cash flow from
operations of US$0.25 million due mainly to lower working capital investments despite
the 3Q10 net loss of US$0.48 million.
Barring unforeseen circumstances, Koda’s Directors continue to believe that the Group
will be profitable in FY2010. The financial position of the Group is expected to remain
strong and gearing level to remain low. The strong balance sheet continues to enable the
Group to capitalise on any strategic M&A opportunities.
# ends #
This document is to be read in conjunction with Koda’s exchange filings, i.e. results
announcement Appendix 7.2 and outlook statement, on 12 May 2010, which can be
downloaded via www.sgx.com.
Koda is well-known for its design strength – leading to appreciation from upscale
customers worldwide for its aesthetical and functional pieces. With proven market
experience, strong product development and significant in-house design expertise, Koda
has been able to offer more than 300 product models, secure orders from more than 200
customers and sell to more than 50 countries.
Consistent business strategies and focused growth initiatives differentiates Koda from
others. Koda has been emphasising on cost-effective expansion and the enlarged
production and sourcing facilities in Vietnam and China enhance its cost competitiveness.
In addition to its growing base in Vietnam, the Group has another manufacturing base in
Malaysia which specialises in certain range of products.