SINGAPORE (Aug 29): Home furniture exporter Koda reported earnings for FY17 more than doubled to US$4.1 million ($5.5 million) from US$1.6 million in FY16.

The bottomline was boosted by improved efficiencies in Original Design Manufacturing (ODM) and expansion of its retail brand, Commune.

Revenue grew 33.4% to US$49.5 million in FY17 from US$37.1 million in FY16, as its key markets received strong export orders.

Gross profit for FY17 improved 54.9% to US$15.9 million from US$10.3 million in FY16, thanks to efforts to streamline ODM operations at its Malaysia and Vietnam operations.

As a result, gross profit margin rose to 32.2% from 27.7% over the comparative periods.

As at June 30, cash and bank balances stood at US$8.4 million, up 81.3% from US$4.6 million a year ago, due mainly to positive operating cash flows as well as proceeds from the disposal of an investment property in Vietnam.

The group has proposed a final one-tier tax exempt dividend of 1 cent per share and a one-time special dividend of 2 cents per share, in addition to the 0.5 cent interim dividend paid on March 21.

Looking ahead, the group expects to remain profitable in FY18.

Joshua Koh, Commune’s Chief Executive Officer, says: “Commune is gaining strong traction in China, especially among younger home-owners. We continue to build the brand and differentiate ourselves as we remain on schedule to open up to 100 stores in China by 2020.”

Shares in Koda closed 3 cents lower at $1.23 on Tuesday.