Pacific Textiles interim profit plunges 25.8% amid revenue decline

Pacific Textiles Holdings Limited reported revenue of HK$2,524.5m for the six months ended September 30, 2025, a 6.7% decrease from HK$2,706.4m in the prior corresponding period. This was driven by a 10.5% decrease in sales volume, despite a 3.5% increase in average sales price. Profit attributable to equity holders fell by 25.8% to HK$79.3m, down from HK$106.9m previously.

The decline in profit was largely attributed to a sharp fall in sales orders between April and June 2025, following a significant increase in U.S. import tariffs on Vietnamese goods, which prompted some customers to withhold or cancel orders. This also led to higher fixed cost absorption due to lower utilization of production facilities. However, the company noted a recovery in sales orders to March 2025 levels, with utilization rates at Vietnamese plants rebounding to 80%-90%.

Total assets as of September 30, 2025, amounted to HK$5,622.1m, an increase from HK$5,310.4m at March 31, 2025. The group's net debt position increased to HK$973.8m, up from HK$679.8m, due to increased trade receivables and inventories. The board declared an interim dividend of HK$5 cents per share.