SINGAPORE (May 9): Homegrown furniture maker Koda saw its earnings surge to US$1.2 million ($1.6 million) for the 3Q ended March, more than trebling from earnings of US$0.3 million a year ago.
3Q18 revenue grew 22.5% to US$13.4 million, from US$11.0 million a year ago.
This was mainly due to higher export sales to its key markets, as well as higher sales from its in-house brand, Commune.
Gross profit jumped 47.5% to US$4.9 million during the quarter, from US$3.3 million a year ago, as gross profit margin rose by 6.2 percentage points to 36.4%.
The increase was mainly attributable to better economies of scale from higher capacity utilisation, as well as higher revenue contribution from its Commune retail and distribution business, which command higher margins.
As at end March, cash and cash equivalents stood at US$7.8 million.
Looking ahead, Koda says its focus over the years on automation, cost control and collaborations with dependable sub-contractors is expected to help mitigate some of the competitive pressures in the furniture manufacturing sector.
Overall, the group expects sales from exports and Commune to continue growing in the coming quarters, barring any major disruption to the world economy.
Shares of Koda last closed at 63 cents on Tuesday.