AV brand suffers massive profit slump, blaming the collapse of Retravision for its woes.
Teac, whose AV products are sold in JB Hi Fi, Harvey Norman and the (soon-to-be defunct) Retravision, reported a 15% drop in revenue to $26.4 million in its half year results to September 30.
Profit after tax fell a massive 58% to $0.79 million for the March to September trading period, compared to $1.83 million the previous period, it said in a statement to the ASX yesterday.
Teac’s massive profit slump was due to the “poorer retail environment” and said growth in the electronics industry was “patchy” with TV sales falling since January 2012.
Gross sales also fell at Teac, which the Japanese owned company blamed the collapse of Retrovision Southern one of its big customers, in May and the subsequent regrouping under Retravision Western.
Teac’s board also said it expects the second half of the financial year to be as “challenging” as the first.
However there was further potential bad news for Teac yesterday as the Retravision Western group announced it is shutting up shop completely with its surviving stores moving to the Narta buying group.
Share price for the Victoria based company was unchanged at $0.50 today.