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Gilimex profits plummet as Amazon slashes orders

By Dat Nguyen   January 18, 2023 | 09:16 pm PT
Gilimex profits plummet as Amazon slashes orders
Yellow storage units produced by Giliimex are seen at Amazon's JFK8 distribution center in Staten Island, New York on Nov 25, 2020. Photo by Reuters
Garment manufacturer Gilimex’s profits plunged 92% year-on-year in the last quarter to VND10 billion ($426,000) as e-commerce giant Amazon canceled most of its orders.

Its revenues fell by 81% to VND262 billion.

The Ho Chi Minh City-based manufacturer of bags and storage items sued Amazon for US$280 million in a U.S. court last month saying that in April 2022 the e-commerce company had "immediately changed and reduced the projected demand" for the remainder of 2022 and 2023 to a fraction of earlier volumes.

This left it with excessive inventories, which rose by 135% to VND1.27 trillion between June and December.

For the full year Gilimex’s revenues fell by 23.7% to VND3.17 trillion, but post-tax profits rose by 9.4% to VND361 billion.

 
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