Cheetah targets 15% revenue growth

PETALING JAYA: Local apparel company Cheetah Holdings Bhd is targeting 15% growth in revenue for its financial year ending June 30, 2015, driven mainly by intensive sales promotions to improve its inventory management control, said its executive director Chia Kee Kwei.
"For the next financial year's target, it is about RM150 million revenue. We will do a lot of promotions to clear stock. We are concerned on stock management, to clear more stock and to get back the cash," he said after the company's AGM yesterday.
Cheetah registered revenue of RM130.4 million revenue for the financial year ended June 30, 2014.
"Other than promotions to attract consumers, we will improve our product line, in terms of material and design, and to add value to the products," Chia said, adding that it is to launch its new ladies' wear brand by the end of this year.
Currently, the company owns 14 boutiques with eight local brands such as Cheetah Junior, Cheetah Ladies, C. Union, CTH Unlimited, C2 United, CTH Ladies and Baby Cheetah and two international licensee brands, namely Ladybird and GQ.
For the first quarter ended Sept 30, 2014, Cheetah saw its net profit fall 46% to RM1.6 million compared with RM2.97 million in the previous year, due mainly to higher operating costs and the implementation of minimum wages this year.
Revenue rose to RM36.32 million from RM35.70 million a year ago.
"In the past two years there are a lot of challenges that (that have worked) against the company, one of them is the cost factor," Chia said, adding that wages made up 90% of its total costs.
"So since 2013, there has been minimum wage, where this year it is been fully applied, since then compared to the past years, we have seen (profits go down by) RM3 million," he said.
Chia noted that besides operational costs and the implementation of the Goods and Services Tax in April next year, the local retail market is expected to be challenging in FY15, with a lot of newcomers, especially in the international brands segment.
He said the company is looking at potential merger and acquisition targets, but declined to elaborate.
The company had a cash hoard of RM22.33 million for the financial period ended Sept 30, 2014.