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FJ Benjamin posts 32% drop in 2Q earnings to $0.66 mil on lower forex gain

Samantha Chiew
Samantha Chiew • 2 min read
FJ Benjamin posts 32% drop in 2Q earnings to $0.66 mil on lower forex gain
SINGAPORE (Jan 31): FJ Benjamin announced that its 2Q19 earnings have declined by 32% to $656,000, compared to $961,000 in 2Q18.
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SINGAPORE (Jan 31): FJ Benjamin announced that its 2Q19 earnings have declined by 32% to $656,000, compared to $961,000 in 2Q18.

This came on the back of a 26% fall in turnover to $37.4 million from $50.5 million a year ago, mainly attributable to a the group’s discontinued loss-making business which has ceased operations and lower sales from its Indonesian associate who is now financing more of its purchase.

The decrease in revenue was partially offset by a 4% y-o-y increase in revenue from the group’s ongoing business.

As cost of goods sold dropped by 29% y-o-y to $19.4 million, gross profit for 2Q19 came in at $18.0 million, 22% lower than $23.0 million last year.

During the quarter the group recorded other expenses of $8,000, compared to other income of $230,000 in the previous year.

Foreign exchange fain dropped by 72% y-o-y to $341,000.

Share of results of associates recorded a loss of $704,000, more than double of the loss recorded the same period a year ago of $321,000.

As at Dec 31, 2018, net borrowings were pared to $10.8 million from $12.8 million, bringing down gearing to 21% against 24% previously.

Nash Benjamin, group CEO says, “We are seeing a turnaround in our business in most of our major brands. Whilst we have completed our restructuring of businesses and closures of non-performing stores, there will be further substantial savings with the reduction of logistics costs in Singapore.

“Notwithstanding the general soft retail sentiment, I am happy to say most of our stores and brands recorded comparable store growth. We plan to launch a luxury French heritage brand of leather goods in June 2019 as part of our growth strategy and are in discussions with several new exciting brands.”

Shares in FJ Benjamin closed at 3.6 cents on Thursday.

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