OSIM Q3 net profit rises 49% on better mix

Lifestyle and nutrition group OSIM International has registered a 49 per cent year-on-year increase in net profit to $19.58 million for the three months ended Sept 30, 2012.

Revenue rose to $142.3 million, up 15 per cent from $123.6 million for the corresponding three-month period last year, thanks to a better product mix of massage chairs, massage sofas, foot massagers, head massagers, neck and shoulder massagers and nutritional supplements. North Asia accounted for slightly over half of total sales for the quarter.

Earnings per share came to 2.69 cents, up from 1.74 cents previously.

Pre-tax profit increased 23 per cent to $26 million on the back of increased sales and enhanced productivity, the group said.

"We continue to enjoy strong sales and with more new products being introduced, we expect the core business to remain strong.

Overall, we are focused on growth through innovation and productivity and growing our brands and outlets."

OSIM, which operates in 26 countries worldwide, has a presence in 45 cities in China through 274 OSIM stores.

The group also said that its GNC outlets are performing robustly, with the newly acquired GNC Taiwan progressing well.

"We have rationalised the number of RichLife outlets to 45 in eight key cities for better focus, control and efficiency. We intend to open more outlets in these key cities," OSIM said in a release to the Singapore Exchange yesterday. It has a total of 252 GNC/RichLife outlets.

Its directors have recommended an interim dividend of one cent per share for the third quarter, to be paid on Dec 12.

Under its share buyback programme, OSIM bought back 86.8 million shares, of which 50 million shares have been cancelled and 11.5 million shares used to buy additional stakes in its subsidiaries. It has a balance of 25.3 million treasury shares. As at Sept 30, 2012, it had a net cash position of $37 million.

Shares in the company closed at $1.485 yesterday, up half a cent.