Tomei to focus on year-end holidays to improve sales

PETALING JAYA: Tomei Consolidated Bhd is cautiously optimistic on sustaining its profitability for the financial year ending Dec 31, 2023 and plans to leverage on the year-end holidays to improve sales.

For the third quarter ended Sept 30, 2023 (3Q23), the integrated gold jewellery manufacturer and retailer’s revenue declined by 6% year-on-year (y-o-y) to RM203.5mil.

Net profit decreased by 29% to RM10.2mil for 3Q23, or basic earnings per share of 7.35 sen from 10.33 sen previously.

For the nine months ended Sept 30, 2023 (9M23), Tomei’s revenue was down by 11% y-o-y to RM664.6mil. Net profit for 9M23 was lower by 30% y-o-y to RM39.1mil.

The group’s retail segment recorded a revenue of RM157.6mil for 3Q23, slightly lower compared with RM159.03mil in the corresponding quarter last year.

Its manufacturing and wholesale segment’s revenue was at RM53.6mil for 3Q23 compared with RM68.1mil in the corresponding quarter last year, representing a decrease of 21%, mainly due to lower customer demand.

Nevertheless, Tomei said in a statement that the results fundamentally reflected the group’s strong performance which has more than normalised compared with pre-pandemic levels, where the 9M23 earnings had far exceeded FY17, FY18 and also FY19 full year earnings.

Tomei managing director Datuk Ng Yih Pyng said the company would continue to focus on introducing new jewellery designs to the market as well as expanding its retail outlet network to reach out to various target markets.

“Delivering profitability and enhancing our shareholders’ value remain as the group’s top priorities.

“We are grateful that we are still able to maintain steady and better earnings, as compared to the pre pandemic level, notwithstanding the current challenging retail environment.

“Our performance is a testament of our resilient and sustainable business strategies. We are optimistic that we can continue to achieve positive earnings. I am looking forward to our full year results, of which I am confident will meet Tomei’s expectations,” he said.

As of Sept 30, Tomei has 57 stores across the country. Tomei has four brands, namely Tomei, Goldheart, Le Lumiere and De Beers.