Bonia Corp Bhd

It is reviewing its business expansion strategy in Malaysia but is continuing its expansion plans in the Middle East despite the current economic slowdown.

The Malaysian business expansion depends very much on Christmas (2008) and Chinese New Year (2009). If market is really low after that, then it will apply a different strategy.

They are consolidating its outlets.

The company has three brands, Bonia, Sembonia and Carlo Rino, and each carries a different price range. If its customers shift from higher-end price range to the middle-low, they are also there. Based on the sales turnover, they have been getting positive feedback on Sembonia and Carlo Rino brands. Bonia contributed about 40% to the group’s revenue while both Carlo Rino and Sembonia contributed about 30% each.

Financial Results …

For financial year ended June 30, 2008, the group recorded a lower net profit of RM27.9 million from RM28.2 million previously.

Revenue rose 21.9% to RM300.2 million from RM246.3 million due to nationwide Mega Sales and major festive seasons. Its overseas sales accelerated by 22% to RM96 million from RM78 million in 2007, representing 32% of its total revenue.

Currently (2008) they have presence in Saudi Arabia and hope to expand its presence to the rest of the Gulf Countries in the next six months (Jan – June 2009). Revenue contribution from the new markets in the Middle East may not significantly impact the group’s revenue in the first year.

For its first quarter ended Sept 30 2008, Bonia’s net profit fell 31% year-on-year to RM5.9 million from RM8.6 million while revenue rose 26% to RM89.1 million from RM70.6 million. The growth was mainly attributed to higher sales achieved from Mega Sales and Hari Raya festive season. Revenue generated from overseas rose to RM10.5 million from RM8.6 million.