Polytex Q2 Net Profit Up 32% Year-on-Year, Proposes Dividend of NT$6 on H1 EPS of NT$7.65

Taiwanese apparel manufacturing giant Polytex (1477-TW) has released its second-quarter financial report, showing a post-tax net profit of NT$814 million, down 24.11% quarter-on-quarter but up 32.19% year-on-year, with earnings per share (EPS) of NT$3.30. For the first half of the year, cumulative post-tax net profit reached NT$1.888 billion, with EPS of NT$7.65, holding steady compared to the same period last year.

Polytex's board of directors also resolved on the first-half dividend distribution, proposing a cash dividend of NT$6 per share. This will result in approximately NT$1.48 billion in cash payouts, representing a payout ratio of about 78%.

Second-quarter revenue totaled NT$8.166 billion, down 8.22% quarter-on-quarter but up 6.20% year-on-year. Gross margin stood at 24.37%, down 1.78 percentage points from the previous quarter but up 0.02 percentage points year-on-year. Operating profit reached NT$1.086 billion, up 0.83% quarter-on-quarter and 15.37% year-on-year, with an operating margin of 13.30%, improving by 1.19 percentage points quarter-on-quarter and 1.06 percentage points year-on-year.

For the first half, total revenue amounted to NT$17.063 billion, down 3.12% year-on-year. Gross margin was 25.29%, up 0.01 percentage points year-on-year. Operating profit was NT$2.464 billion, down 2.31% year-on-year, while operating margin reached 14.44%, up 0.12 percentage points year-on-year.

In Q2, Polytex benefited from increased shipments of higher-priced sports products driven by the FIFA World Cup, with sports-related products rebounding to account for 55% of total revenue, boosting both sales and profitability. As the third quarter enters the traditional peak season and product mix optimization is expected to continue, analysts estimate that the company's performance will surpass Q2 levels in the coming months.