Nam Lee’s FY15 profit soars 80.1% to $12.9m

Thanks to its successful expansion schemes.

Nam Lee’s FY15 profit soared to $12.9m, reflecting an 80.1% YoY surge of $5.7m from FY14’s %7.2m.

According to the company’s annual report, the profit spike is mainly attributable to Nam Lee’s collaboration with customers on extending its relevance beyond the traditional scope of manufacturing. The company invested in the requisite factory set-up, machinery, and manpower training, and commenced the provision of new value-added assembly services for a long-term customer.

The company noted that distribution costs climbed from $2.6m in FY14 to $3m in FY15, which was in line with the higher sales volume. Administrative costs also increased from $10.7m in FY14 to $13.5m in FY15, attributed mainly to additional headcount as well as a rise in accrued personal remuneration.

Meanwhile, other income slumped from $1.3m in FY14 to $0.2m in FY15 as several miscellaneous items disposal of property, plant and equipment did not recur in FY15. 

Also, gains from government incentive schemes were lower in FY15, due mainly to Nam Lee’s effective tax rate of 19.5% for FY15 being higher than 16.2% for FY14 as a Malaysian subsidiary had previously benefitted from a tax incentive.