Restructuring has taken its toll on FJ Benjamin Holdings’s bottom line.
The fashion and lifestyle brand management company has deepened its full-year net loss to S$23 million (US$16.9 million) for its latest financial year, compared to S$17 million the previous year.
Group turnover subsided 14 per cent to S$253.6 million. Excluding the translation effects of foreign currency, the fall was 10 per cent.
Turnover from the fashion business declined 9 per cent to S$212.5 million, while timepieces fell 13 per cent to S$51.6 million, after excluding currency translation loss.
FJ Benjamin attributes the turnover decline to the closing of non-performing stores, discontinued businesses and the closure of its north Asian business, plus a S$10.4 million loss in converting Malaysian ringgit to Singapore dollars. These factors more than offset a slight increase in sales from franchise brands.
Gross profit margin was 39 per cent against 41 per cent in the previous year because of increased promotional expenses.
The group operating loss, excluding a one-time gain of S$19.6 million from the sale of mandatory convertible bonds and the sale of properties last year, was 32 per cent lower year on year at S$19.9 million.
FJ Benjamin says it expects the trading environment to remain challenging amid uncertain economic slowdown in its key markets.
“The restructuring that started in 2013 has been substantially completed, and associated losses are unlikely to recur,” says the group.