SYDNEY: Gazal has revealed recently implemented cost reduction programs look set to add up to $4 million to its 2009/10 pre-tax profit result.
The publicly listed apparel company expects pre-tax profit for the 2009/10 financial year to be within the range of $12.5 million to $13.5 million. This is up from its 2008/09 pre-tax profit of $9.5 million.
Gazal outlined the reasons for the profit upgrade.
“The better likely profit position this year is a result of improved margin management and ongoing overhead savings flowing from cost reduction programs that were implemented during the course of the previous financial year,” the company said.
The company conceded the financial results achieved during the previous corresponding period, that is January to June 2009, were “particularly poor”.
Brands currently within the Gazal portfolio include Lovable, Davenport, Crystelle, Bisley Workwear and Trent Nathan. The company is scheduled to announce its comprehensive full year financial results on August 19, 2010.