Casablanca Group issues profit warning
Bedding manufacturer and retailer Casablanca Group has warned investors of a “substantial decrease” in profit.
The Hong Kong-listed company is one of the leading brands of bedding products in the Greater China region, with a focus on the high-end and premium markets.
Chairman Cheng Sze Kin said the warning was issued following a preliminary review of management accounts for the 11 months to November. However, the group will record a profit for the six months to December 31 compared to the loss recorded for the prior six months.
The board said the first-half loss and reduced second-half profit is attributable to factors including reduced wholesale sales, increasing expenses relating to self-operated retail sales and sales to distributors and net exchange losses arising from the sharp depreciation of Renminbi against Hong Kong Dollar during June.
Casablanca Group, founded in 1993, operates its own proprietary brands Casablanca, Casa Calvin and Casa-V. Its products include bed linen, duvets and pillows, blankets, mattresses and towels.