KUALA LUMPUR (Aug 26): Bonia Corporation Bhd (KL:BONIA) reported its smallest earnings since the pandemic as sales at the luxury fashion company fell with weakened consumer sentiment while expenses rose.

Net profit for the financial year ended June 30, 2025 (FY2025), was RM6.6 million, down nearly 80% from a year earlier, according to its exchange filing. Bonia blamed higher staff and depreciation expenses as well as marketing activities for its 50th anniversary event that featured a Korean superstar for the decline.

Moving forward, the company flagged subdued consumer sentiment amid inflationary pressures and prevailing global economic uncertainties while operating costs could rise from a new tax on rentals.

“The group will adopt a more balanced and strategic allocation of resources,” Bona said. “Our focus will be on strengthening core businesses, rationalising underperforming stores, enhancing operational efficiency and pursuing new growth opportunities.”

Revenue fell close to 9% to RM377.33 million in FY2025 and consumers in Malaysia and Singapore have become more cautious in their discretionary spending, Bonia noted.

In Singapore, where the company is also present, the strong Singapore dollar and an increase in the goods-and-services tax rate prompted more Singaporeans to shop abroad while also dampening tourist spending within the country.

The company slipped into the red in the final quarter of its financial year (4QFY2025) with a net loss of RM10.63 million. Apart from a near 10% decline in revenue, the company also booked impairment of RM10.6 million on goodwill, property, plant and equipment, right-of-use assets and receivables.

No dividend was declared for its most recent quarter, though the company has paid out five sen per share during FY2025.