Sat, Feb 10, 2018 - Page 12 News List

Quang Viet sales rise 37.99% due to Winter Olympics

By Kuo Chia-erh  /  Staff reporter

Garment maker Quang Viet Enterprise Co (廣越企業) yesterday forecast double-digit percentage annual growth in revenue for this quarter, thanks to growing demand ahead of the Pyeongchang Winter Olympics in South Korea.

Sales last month jumped 37.99 percent year-on-year to NT$450.51 million (US$15.32 million) from NT$326.47 million, according to a company filing with the Taiwan Stock Exchange.

“Sales in the first quarter are expected to grow by more than 20 percent from nearly NT$787 million last year, as we received some rush orders from overseas clients ahead of the Winter Games,” a Quang Viet official said by telephone.

GROWTH TARGET

The company has set an annual sales growth target of 15 percent for this year, after posting revenue of NT$10.2 billion last year, he added.

Taipei-headquartered Quang Viet also expects profitability to improve from last year, as the company plans to raise the prices of down jackets by at least 3 percent this year to reflect the increasing cost of duck feathers.

“There is still an uptrend in global duck feather prices, but that would not put much pressure on the company’s gross margin this year,” the official said.

Gross margin was between 14 percent and 15 percent last year, compared with 16.74 percent in 2016.

NEW BUSINESSES

The company’s newly acquired businesses are set to make stable revenue contributions this year, the company said, adding that Romania-based Biancospino SRL and Taiwan’s King Hamm Industrial Co Ltd (金漢實業) are forecast to generate revenues of US$15 million and US$40 million this year respectively.

The company said it has no acquisition plans for this year.

Quang Viet shares yesterday closed 1.15 percent lower in Taipei trading, outperforming the TAIEX, which fell 1.49 percent.

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