Fujibo Holdings Posted a 5.1 Per Cent Decline in Its Consolidated Net Sales

Amidst a muted performance from its textiles business, Japan’s Fujibo Holdings, Inc. witnessed a dip in its overall sales revenue in H1 FY 2013-14.

The company, which is engaged in the manufacture and sale of spun yarn, textiles and knitting apart from other businesses, posted a 5.1 per cent decline in its consolidated net sales at 19,091 million yen in the six months ended 30 September 2013 from 20,117 million yen in the same period a year ago.

Net sales from the company’s textile business rose a mere 5.4 per cent to 7,902 million yen in the six months ended 30 September 2013 from the same period a year ago  as weak demand amid an uncertain global economic outlook weighed on the company’s spinning and synthetic fiber business.

Rising competition from other branded products also weighed on the sales performance of the textile business of Fujibo Holdings, Inc. in H1 FY 2013-14.

The sharp depreciation of the yen against major global currencies following the Bank of Japan’s easy money policies pushed up import prices of raw materials, taking a toll on the profitability of the company’s textiles business.

As a result, operating profit from the textiles business witnessed a dip of 96.1 per cent at 4 million yen in the six months ended 30 September 2013 from the same period a year ago.

Owing to a muted sales performance due to financial problems in Europe and slowdown in emerging markets and rising costs, the company’s consolidated net profit fell by 53.7 per cent to 811 million yen in the six months ended 30 September 2013 from the same period a year ago.