Hong Kong-based upholstery manufacturer Man Wah has reported a decline a sales and profit while EU revenues delivered growth.
According to its fiscal year results ended 31 March 2025, total sales fell by 8.2% to HK$16.90 billion from HK$18.41 billion in 2024.
Gross profit margin for the year increased from 39.4% to 40.5%, while net profit declined to HK$2.1 billion from HK$2.3 billion.
Within its divisions, Chinese market sales were down 17% to HK$10.2 billion, representing 58.7% of total revenues – down from 65% in 2022. North American sales rose 3.2% to HK$4.4 billion, while EU sales were up 22% to HK$1.58 billion, representing 8.7% of group revenues – up from 6.5%.
Commenting on its performance, Man Wah said: “During the FY2025, the global furniture market showed a complex and volatile trend. With the impact of the macroeconomic conditions, consumer confidence in the domestic market was slow to recover and they were more cautious in purchasing furniture products. Nonetheless, the trade-in subsidy policy launched by the Chinese government introduced a booster into the sluggish furniture market, partly offsetting the downturn in domestic sales.
“In overseas markets, the global economy gradually recovered and consumer demand rebounded in some regions, while the gradually emerging scenarios including trade frictions and exchange rate fluctuations posed certain challenges to the export business.
“In this complex market condition, the Group proactively responded to various challenges and maintained the resilience of its business through a range of measures such as strengthening brand building, optimizing the product mix, expanding sales channels and enhancing operational efficiency.”
On overseas markets, Man Wah added: “The performance of overseas markets continued to be satisfactory, with an overall export of approximately 884,000 sets of sofa products, representing a year-on-year growth of approximately 13.0%.
“Among them, the North America market steadily improved. The Group launched a series of products that match the aesthetics and usage habits of local consumers, which were well received and the orders and shipments continued to increase.
“The growth in sales was primarily a result of the Company’s brand recognition gained over the years, product innovation and channel expansion in the North America market. At the same time, the Company actively cooperated with local furniture retailers and distributors to further expand its market coverage.
“For Europe and other overseas markets (excluding Home Group), the Group strengthened its strategic layout and marketing promotion and successfully expanded its sales channels, which were the major factors for the rapid growth of business in the region.”
