Zhulian Q4 earnings fall 56% to RM13.7mil

KUALA LUMPUR: Zhulian Corp Bhd, which manufactures and distributes consumer products through multi-level marketing, saw its earnings in the fourth quarter ending Nov 30, 2013 fall 56% to RM13.7mil from RM31.3mil a year earlier.

Revenue in the quarter was RM77.8mil, down 33.5% from RM117.2mil previously.

Basic earnings per share came in at 2.99 sen compared to 6.81 sen the year before, but the company – which also operates in Thailand, Indonesia and Singapore – proposed a slightly higher dividend of 7 sen from 6.5 sen previously.

Revenue for the full year was down 7.4% to RM417mil from RM450.4mil, but earnings crept up 3.3% to RM121mil, from RM117.1mil in the previous financial year

Zhulian, whose products include costume jewellery, nutrional products and apparels, said the fall in revenue in Q4 was mainly due to a decrease in overseas market demand, and it attributed the fall in full year earnings, lower by RM33.37mil, to weak local demand.

On its prospects for the current year, the company said the economic outlook was expected to be more challenging due to escalating price of fuel and food, and also the hike in electricity tariff, which may affect the consumer.

It also noted that the rising political uncertainties in Thailand might also impact its export demand.

“In anticipating such situation, the group will continue its promotional efforts to boost the productivity of  istributors and at the same time remaining active in innovating its product portfolio and develop new product,” Zhulian said.