Taiwanese-owned Grand Twins International Cambodia (CSX:GTI) has posted an annual after tax profit of $286,000 in 2021 – a large turnaround after posting a loss of over $1 million as of June last year.
The turnaround was attributed to stronger than expected sales in Q4 and is on par with its 2020 after tax annual profit of $290,296.
In the company’s fourth quarter filing to Cambodia Securities Exchange GTI Chairman Yang Saw Shin stated, “the company was able to continuously maintain good relationship with our main customer namely Addida, in order to received more purchase order in 2021.
Financial performance highlighted for the 4th quarter of 2021 the company generated $35.270 million, and interpreted to profit before tax of $440,791 and the profit after tax of $880,426 a slight increase compared to previous years.
Expectations for 2022 is that we will commit to keep more effort, enhance our corporate governance and accomplish our vision and mission. Our target is to achieve higher profit more than previous years.”
GTI has been one of the worst preforming stock on the local exchange currently trading at KHR 4,280 a share down from KHR 9,640 during the company’s IPO in 2014.
According to official documents, the company’s substantial shareholders (=5%+) are GRAND TWINS INTERNATIONAL LTD (41%) and HOPE RIDGE LIMITED (9.6%).
GTI has been one of the major garment manufacturers that operating in Cambodia since 1990s and main products include apparel brands; Adidas, Reebok, Taylor Made, Salomon, New Balance, Kohl’s, Nautica, NorthFace, Russell Athletic and others.
According to GTI revenues are generally highest from July to December which we consider to be our peak sale season. During this period, our higher profit margin products, eg. Aturmn and winter clothes are sold. From January to June, we sell products for the spring and summer seasons.
Cambodia Investment Review previously reported the company’s complaints that Cambodia is struggling to compete with its neighbors due to low productivity, rising minimum wages and strikes by trade unions.