Top Form International reported a 39 per cent sales decrease to HK $ 265.8 million (US $ 33.9 million) for Q3 FY ’23, compared to the previous fiscal period, but saw a significant rebound from Q2. The decline was attributed to softened US customer demand due to overstock and high inflation.
According to a media release, Top Form International revealed that 67 per cent of their sales were in the US market, while 21 per cent were in Europe, and the remaining 12 per cent were in other regions worldwide.
For the nine-month period ending on 31st March 2023, Top Form International reported sales of HK $ 737.7 million, indicating a 35 per cent decrease compared to the corresponding period in the previous fiscal year.
The company attributed this decline to a substantial decrease in sales to their key US customers.
Regarding production, Top Form International’s manufacturing facilities in Southeast Asia contributed to 71 per cent of the global output, while China accounted for the remaining 29 per cent during the quarter.
The company’s manufacturing capacity was notably affected by weak demand, especially in Southeast Asia, where a significant portion of orders from US customers are produced.
Taking the current order situation into account, Top Form International anticipates that sales in the fourth quarter will be similar or slightly improved compared to the third quarter but considerably lower than the same period last year.
Furthermore, for fiscal year 2023, the company expects sales to be significantly lower than the previous fiscal year, primarily due to a substantial decline in demand from major customers.
