Performance Review
The Group's turnover for the financial year ended 31 December 2006 increased by 13% against the same period last financial year. The positive turnover growth was contributed mainly by higher domestic demand. Profit Before Taxation increased by 16% against the same year last year. The increase in profit before tax was in line with increase in turnover.
The Group's turnover for the fourth quarter ended 31 December 2006 increased by 4% against same period last financial year. The positive turnover growth was contributed mainly by higher export sales from oversea markets. However, profit before tax has decreased by 53% as compared to same period last financial year mainly because last years' fourth quarter results had been adjusted for over-provision of advertising and promotion expenses of RM5.6 million provided for in the preceding 3 quarters of year 2005. In current financial year 2006, there is no over-provision of advertising and promotion expenses. The lower profit for the current quarter is also affected by higher material and distribution cost and foreign exchange impact.
Current Year Prospects
The Group faces greater challenges ahead in view of the anticipated higher commodity prices, strengthening Ringgit, and intense competition in domestic and export markets. Nevertheless, the Group shall put in extra effort in brand building and increased market share through heavy advertising and promotion activities. The Board anticipates the performance of the Group to remain profitable for the new financial year 2007.
Good words.
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