A prominent global manufacturer and distributor of smart furniture such as sofas and bedding, announced mixed financial results for the six months ending September 30, 2024. The company, Man Wah Holdings, has a strong presence in key markets, including China and North America.
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During the period, revenue dropped by 7.1% year-on-year to approximately HK$8.3 billion, reflecting difficulties in several markets. Despite this, profits attributable to owners edged up by 0.3% to HK$1.14 billion, supported by an improved gross profit margin of 39.5%. This margin expansion was achieved through effective cost management and operational efficiency improvements.
Market performance varied across regions. North America posted a 5.7% increase in sales, driven by strong demand, while the domestic PRC market experienced a sharp 17.2% decline in revenue, underscoring ongoing challenges. Meanwhile, the company's strategic growth in European and other international markets delivered positive results, contributing to revenue growth in these regions.
Looking ahead, Man Wah Holdings remains positive about a gradual recovery in the furniture sector, buoyed by government incentives in China and steady demand in overseas markets. The company plans to leverage its expertise in product development and its broad international presence to address challenges and explore new growth opportunities.
Although the results highlight varied market conditions, Man Wah Holdings' emphasis on cost efficiency, geographic expansion, and innovation places it in a strong position to achieve sustainable growth in an evolving global landscape.
Headquartered in Hong Kong, Man Wah Holdings was founded in 1992 and is now one of the world's largest producers of home furnishings.
Source: www.markets.businessinsider.com