Weak rupiah, soft sales undermine Courts Asia’s profitability drive

Sales will be flat this year.

A potent combination of sluggish furniture sales and translation losses from the weakening rupiah will undermine Courts Asia’s efforts to stay boost profitability this year.

According to Maybank Kim Eng, recent economic troubles will put off discretionary consumer spending in the region, which will keep the group’s sales flat this year.

Singapore sales have declined for five straight quarters, while Indonesia operations will struggle to break even this year.

"While steadier in recent quarters, sales will encounter more hurdles. Malaysia will be hit by weakening MYR; Singapore remains sluggish as Courts struggles to find its positioning; Indonesia will record a loss of an estimated SGD2m," the report said.