Garment manufacturer for major international clothing brands including Adidas Group – Grand Twins International Cambodia (CSX:GTI) – has posted an after-tax profit of $275,167 in the first quarter of 2022 an increase of 253% from $78,117 over the same period last year.
GTI posted an annual after-tax profit of $286,000 in 2021 – a large turnaround after reporting a loss of over $1 million as of June last year. To read more about GTIs 2021 annual results click here.
The majority Taiwanese-owned GTI has been one of the worst-performing stocks on the local exchange trading at KHR 4,100 a share down from KHR 9,640 during the company’s IPO in 2014.
In the company’s quarterly report Chairman Yang Shaw Shin commented that the expectation for future quarters is the company will commit more effort to enhance corporate governance and accomplish their vision and mission.
Technology changing the industry
Cambodia’s manufacturing sector is currently undergoing a technological transformation with robots and high-tech machines that can outperform local workers are likely at least five to 10 years away, new software developments are on the horizon that could start to transform the industry sooner.
To read more about the increasing ESG requirements for Cambodian manufacturing exports click here.
GTI stated it will continue to incorporate advanced technology into our operations. “Meanwhile, we continue to seek opportunities to collaborate with international brands and develop our market and our technical skills to make ourselves more competitive globally,” the quarterly report outlined.
Remaining competitive in the region
The company currently employs 3,559 full-time staff and is a major producer of garments for Adidas Group one of the global leaders within the sporting goods industry, offering a broad range of products around its core brands: Adidas, Reebok, TaylorMade, Rockport, and Reebok-CCM Hockey.
GTI management has previously complained that Cambodia is struggling to compete with its neighbors due to low productivity, rising minimum wages, and strikes by trade unions.
“Cambodia’s garment sector is the second least productive in the region, accounting for only 60% by comparing to China’s garment sector. The productivity of Vietnam and Indonesia have reached 80%, while Bangladesh is only 50%, which is lower productivity than Cambodia,” GTI stated.
“The lower in productivity and higher worker wages will be a real challenge for the Cambodia industrial while most overseas customers judge primarily on productivity and competitiveness when they choose partners to supply their products,” it added.
To read more about the GTI complaint click here.