From Home Furnishing Business
ManWah Holdings Increase Revenue by 19%
Upholstery major ManWah Holdings announced its six-month interim results on Nov. 11., posting a 18.6 percent increase in revenues and putting the company on target to reach $500 million in the North America Market.
The business reported revenues of $700.7 million compared to $590.9 million for the last corresponding period.
The company saw a decline of 16.1 percent in net profits, decreasing from $101.2 million to $85.0 million over the same six-month period in 2017. Net margin decreased by five points from 17.1 percent to 12.1 percent over the same period.
ManWah officials report that profit declines were a result of increase in pricing of materials, including chemicals, steel and cardboard used in packaging.
The North America market showed an increase of 19.1 percent in revenues for the six-month period. This year’s revenues grew to $269.6 million over six months, compared to $226.2 million for the last corresponding six-month period.
“Revenue increases were achieved by our commitment to increase our product offerings and expand our customer base. As one of the largest upholstery factories in the world we offer controlled quality built products with a value proposition, while we continue to create solutions for our expanded retail partners,” said Guy Ray, CEO of ManWah Holdings USA.
This past year Manwah Holdings USA expanded its stationary product presentation, introduced the Inversion Conversion Mechanism which gives zero gravity functionality in sofas and sectionals. Additionally, the company introduced the Foxworthy Home Collection, opened warehouses in N.C. as well as California and expanded its Quick Ship program. ManWah also entered into the upper end of the market with the New Reserve Collection.
In July, the company announced its newly created e-commerce division. The division was created to support and be a major supplier to the e-commerce channel. As the channel expands, ManWah will be able to offer products out of its domestic warehouse as well as its factory direct program.
ManWah Holding has over 18 million square feet of manufacturing in China and recently announced manufacturing expansion into Vietnam. Current production is up to 500 containers per month. The Timberland Upholstery factory was purchased in June from a private owner and expansion began in October to grow the footprint to four million square feet of manufacturing by the 4th quarter of 2019.