Apparel maker Makalot Industrial Co (聚陽實業) yesterday said that pretax profit grew more than 25 percent year-on-year last month, buoyed by a rapid recovery in demand as nations eased COVID-19 restrictions.
Profit expanded for a second consecutive month to NT$263.34 million (US$9.28 million) last month, compared with NT$210.18 billion in January last year, Makalot said in a filing with the Taiwan Stock Exchange.
That represented monthly growth of 26 percent from NT$208.85 million.
Photo: CNA
Earnings before tax jumped to NT$1.2 per share last month, from NT$0.945 a month earlier and NT$0.955 a year earlier, company data showed.
Revenue last month advanced 13.81 percent annually to NT$2.38 billion from NT$2.09 billion.
Last month’s strong results bode well for Makalot’s business outlook this year.
Company chairman Frank Chou (周理平) told investors in November last year that customer demand was recovering at a faster-than-expected pace, as some cities in the US and Europe ended lockdowns in the second half of last year.
Makalot makes apparel for Gap Inc, as well as Fast Retailing Co’s GU sub-brand, Kohl’s Corp, Target Corp, Walmart Inc and Hanesbrands Inc.
To cope with rapidly growing demand, the company plans to boost capacity at its major manufacturing sites in Vietnam and Indonesia.
To fund the expansion, Makalot plans to raise NT$2.99 billion through a rights issue.
It plans to offer 22 million new common shares with the price set at NT$136 each.
Makalot’s pretax profit expanded 10.89 percent year-on-year to a record NT$2.72 billion last year, compared with NT$2.45 billion in 2019. Earnings before tax surged to NT$12.36 last year from NT$11.13 in the prior year.
Revenue shrank 7.85 percent to NT$24.92 billion, compared with NT$27.05 billion in the previous year.
The US market contributed more than 70 percent to its revenue last year.
Separately, down jacket and outdoor garment maker Quang Viet Enterprise Co (廣越企業) saw revenue decline at a slower pace of 17.5 percent annually last month to NT$600 million.
On a monthly basis, revenue jumped 17.3 percent from NT$512 million.
Quang Viet said that it was a positive sign for a faster recovery.
Analysts are forecasting that revenue would regain its momentum from April, and gather pace in the second and third quarters.
Quang Viet counts Patagonia Inc, North Face and Adidas AG among its major customers.
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