Blame it on intense local, global competition.
CosmoSteel ended FY15 in the red, booking a net loss of $0.9m, according to its annual company report. This is a whopping 116% crash from its FY14 net profit of $5.5m.
The company asserted that it faced intense competition both locally and globally, which exerted downward pressures on its profitability.
Meanwhile, CosmoSteel saw 36.4% YoY drop in its gross profit to $19.6m, from $30.7m in FY14. This was in line with lower revenue and from costs incurred from an expansion of the company’s service range in response to customers’ requirements to include logistics handling.
The company reported it saw net other gains of $0.6m in FY15, thanks to a combination of foreign currency gains, recovery of bad debts and reversal of impairment trade receivables. In comparison, there was a net other losses of $1.9m in FY14 which was brought about by an increase in allowance for slow-moving inventories.
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