KUALA LUMPUR: Ogawa World Bhd returned to the black in the financial year ended June 30, 2010, with net profit of RM8.29 million compared with net loss of RM12.43 million in FY09, boosted by a recovery in the fourth quarter.

The company said on Friday, Aug 20 that revenue for FY10 increased by 21.3% to RM155.95 million from RM128.55 million in FY09. 'The improved performance (in earnings) is due to higher sales resulting in higher gross margin and lower provisions for doubtful debts,' it said. It recommended a final dividend of three sen per share.

For the fourth quarter, net profit rose 88.2% to RM6.12 million from RM3.25 million a year ago. Revenue rose 13.6% to RM47.70 million from RM42 million.

When compared with the third quarter ended March 31, 2010, it said revenue increased 28.7% to RM47.70 million from RM37.06 million. The group registered a 175.5% increase in profit before taxation of RM5.18 million versus RM1.88 million in the third quarter as a result of higher sales and higher gross profit.

'Due to the continuing uncertainties in the global economies, retail market conditions remain difficult. The group will be cautious in managing these challenges as it focuses on executing its medium to long term growth strategies,' it said.