Eclat Textile Co. reported a 17.8% increase in first-quarter profit as its Indonesian manufacturing facilities boosted production efficiency, though the company warned that currency appreciation may pressure future earnings.
Net income rose to NT$1.68 billion ($51.8 million) in the quarter ended March, with earnings per share reaching NT$6.12, the second-highest for any first quarter in the company’s history. Revenue climbed 22.8% to NT$9.38 billion, according to a board meeting statement released Wednesday.
“The Indonesia factory’s improved capacity and efficiency had a significant positive impact on gross margins,” the company said. First-quarter gross margin expanded to 30.2%, up 0.7 percentage points year-on-year.
The Taiwanese apparel manufacturer reported April revenue of NT$3.39 billion, an 18.2% increase from a year earlier, bringing year-to-date revenue growth to 21.6%.
While Eclat expects double-digit growth in the second quarter, executives expressed caution about the second half, citing tariff uncertainties and the recent strength of the New Taiwan dollar, which could erode profits despite a NT$113 million foreign exchange gain in the first quarter.
The company continues discussions on its third-phase Indonesia expansion, with plans to present detailed proposals at its August board meeting. The expansion will likely focus on garment production facilities with separate land acquisition for fabric manufacturing.
