Garment maker Texwinca's H1 profit drops despite higher shipments as costs rise
Overview
Hong Kong-listed textile and garment maker's half-year revenue rose 5.1% yr/yr
Profit attributable to shareholders fell 51.8% due to margin compression and higher costs
Company cut interim dividend to HK3.0 cents per share from HK4.0 cents a year earlier
Outlook
Texwinca Holdings did not provide specific financial guidance for future periods in its press release
Result Drivers
MARGIN COMPRESSION - Co said profit margin was squeezed by persistent macroeconomic uncertainties, elevated oil prices, and rising raw material, energy, and labour costs
VOLUME GROWTH OFFSET BY COSTS - Higher shipment volumes and expanded client base drove revenue growth, but increased costs outweighed these gains
RETAIL IMPROVEMENT - Improved operational performance in retail and distribution partially offset higher costs
Company press release: Full Story
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue | HK$2.85 bln | ||
H1 Net Income Attributable | HK$54 mln |
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)