Home & Work
The company was established in 1980 as Koda Woodcraft Pte Ltd and listed in SGX in 2002. The Group is an ODM for furnitures - Bedroom sets, tables & chairs, outdoor and occasional furnitures.
Products are sold in America, Europe, Asia Pacific and Middle East.
Founder Koh Teng Kwee retired in FYJun20 after more 40 years. James Koh Jyh Gang is the Executive Chairman and CEO. Majority of the senior positions are held by family members.
Key manufacturing facilities are located in Malaysia and Vietnam.
Revenue grew 37% to $82M on record profit of $9.1M or 11.0% net margin. Major growth was from America where revenue increased 48% contributing 60% of mix. Asia Pacific contributing 30% mix grew 9% followed by Europe growing 51% on 9% mix.
Manufacturing comprising 81% of revenue is the company key earning driver. Earning contribution Retail & Distribution were mostly mediocre.
Pandemic Driven Growth
Covid-19 pandemic beginning in 2020 drove global population to work from home. This in turn drive demand for housing, larger apartments and hence furniture needs.
In China, Koda is planning to open 100 Commune stores in 2022. Expansion will be measured rather than aggressive.
Going into 2022, America and rest of the world are facing many challenges:
Inflation: U.S. Feb22 CPI hit an all time high of 7.9% in 40 years.
Russia invaded Ukraine on 24-Feb-2022 leading to significant sanctions that will impact energy & commodity prices. This will in turn pressure inflation upward.
On a brighter note, Covid-19 is shifting from pandemic to endemic stage as more people are vaccinated and healthcare expand capacities.
Collectively, we are likely to witness demand moderating in the medium term.