De Licacy posts robust sales on growing orders

OPTIMIZED OUTPUT::Two of the firm’s three filament plants in Vietnam posted a 100% utilization rate and its third plant is expected to reach full capacity by next year

By Kwan Shin-han  /  Staff reporter

Tue, Sep 10, 2019 - Page 11

Woven fabrics maker De Licacy Industrial Co (得力實業) yesterday released a promising outlook for this quarter and next thanks to growing orders from its major customers, while output of its Vietnamese plants is also expected to grow.

“Orders from our top five clients grew more than 20 percent in the first eight months of this year,” a company official said by telephone, citing orders from Under Armour Inc, Adidas AG and Polo Ralph Lauren Corp.

The company has also added new customers this year, which has contributed to sales growth, said the official, who declined to be named.

“Rising demand led to robust year-on-year growth in sales from Vietnam and Taiwan last month,” while business in China suffered a small decline, she said.

De Licacy last month posted a 15.12 percent year-on-year and 14.84 percent month-on-month increase in sales to a record-high NT$929.73 million (US$29.75 million), while cumulative sales in the first eight months climbed 12.88 percent year-on-year to NT$6.48 billion, the highest in the company’s history.

“We expect growth in revenue to continue next quarter as output from our Vietnamese operations rises,” the official said, adding that the company remains confident about achieving annual sales of NT$10 billion this year.

Two of the firm’s three filament plants in Vietnam’s Binh Duong Province posted a 100 percent utilization rate and its third plant is expected to reach full capacity by next year, the official said.

The company plans to start trial production at a new plant in the same province in the second half of next year, the official said, adding that the US$7 million investment would help it expand in the local market.

Separately, textile and garment manufacturer Eclat Textile Co (儒鴻) on Friday last week posted sales for last month of NT$2.48 billion, a 0.89 percent month-on-month and 26.82 percent year-on-year increase.

In the first eight months, cumulative sales increased 1.69 percent year-on-year to NT$18.13 billion, the company said.

As major clients such as Nike Inc and Adidas increase orders to avoid new US tariffs that are due to begin on Dec. 15, Eclat is expected to report even higher sales in the second half of the year, analysts said.