Grand Twins Revenue Down After Year of Unrest

Revenue has dropped significantly at the Taiwanese-owned garment factory Grand Twins International in 2014 due to nationwide labor strikes that began last year, according to the firm’s latest quarterly financial statement.

According to a filing on the Cambodian Securities Exchange (CSX) on Friday, the sportswear manufacturer reported revenue of $10.96 million for the three-month period ending September 30, down 40.7 percent compared to $18.49 million during the same period last year.

Late-shift workers leave the Grand Twins International garment factory in Phnom Penh's Pur Senchey district on Monday evening. (Siv Channa/The Cambodia Daily)
Late-shift workers leave the Grand Twins International garment factory in Phnom Penh’s Pur Senchey district on Monday evening. (Siv Channa/The Cambodia Daily)

For the first nine months of the year, revenues decreased from $47.2 million in 2013 to $43.3 million this year.

Stanley Shen, executive assistant to the chief financial officer for Grand Twins, said nationwide strikes over higher wages, which began in December and were brought to a bloody end in January, forced clients to scale back orders in the country.

“Due to the mass strike last year, our customer has re-allocate some productions to different region to assure the stability of the supply,” Mr. Shen said in an email. “This order re-allocation has caused our revenue to decrease dramatically.”

Despite the factory experiencing strikes of its own earlier this month—thousands of employees protested for higher wages before being ordered by court to return to work—Mr. Shen said he expects business to pick up in the last quarter of the year, the company’s peak season.

“The demand for the Company’s products is sensitive to seasonal changes. Revenue is generally higher from July to December as a result of higher demand for autumn and winter clothes,” the company said in its financial report.

Lamun Soleil, spokesman for the CSX, said the decrease in revenue at Grand Twins will be a disappointment to investors, adding that the effect on the company’s stock price will likely be apparent in the coming weeks.

“I think investors will not be happy by the revenue decrease. It will have an effect on investor sentiment,” he said. “We will see… how much it will impact the stock price.”

The share price of Grand Twins, one of only two companies listed on the bourse, closed Monday at 7,200 riel, or about $1.80, down from $2.41 when the firm went public on June 16.

styllis@cambodiadaily.com

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