Pacific Textiles Reports Mixed Earnings Amid Challenges

Pacific Textiles Holdings ( (PTEXF) ) has released its Q2 earnings. Here is a breakdown of the information Pacific Textiles Holdings presented to its investors.

Pacific Textiles Holdings Limited is a company engaged in the manufacturing and trading of high-quality cotton and synthetic knitted fabrics, operating in the textile industry across various regions including Hong Kong, Macau, China, and Vietnam. In its latest earnings report for the six months ended September 30, 2024, Pacific Textiles reported a revenue increase of 16.2% to HK$2,667.2 million compared to the same period in 2023, primarily driven by a 21.9% rise in sales volume. However, the company’s profit attributable to equity holders fell by 14.1% to HK$106.9 million, mainly due to losses at the initial stages of operations at the new Vietnam Nam Dinh Plant, typhoon-related damages to the Vietnam Hai Duong Plant, and reduced exchange gains. Despite the challenges, the company maintained a gross profit margin of 7.5% and a net profit margin of 4.0%, with a notable improvement in the China Nansha Plant’s performance. Looking ahead, Pacific Textiles aims to enhance productivity at its Vietnam Nam Dinh Plant and recover operations at its Vietnam Hai Duong Plant, while focusing on expanding its customer portfolio and introducing new products to the market. The company is committed to stringent cost control measures and flexible treasury management to improve profitability in the second half of the financial year 2024/25.