Osim records 13 per cent rise in net profit for Q1

PHOTO: Osim records 13 per cent rise in net profit for Q1

Massage chair maker Osim International on Tuesday posted a 13 per cent rise in net profit to $25.1 million year on year for the first quarter.

But revenue for the three months to March 31 was largely flat, inching up 0.4 per cent to $150.6 million from the preceding year.

The increase in sales was driven by the launch of new products, Osim said in a statement.

Asia's biggest maker of massage chairs also said sales growth was due to a better product mix of massage chairs, massage sofas, foot massagers, head massagers, neck and shoulder massagers and nutritional supplements.

It added that it expected to continue creating higher consumer demand for its massage products and nutritional supplements.

The bulk of Osim's revenue in the first quarter came from North Asia, which contributed 58 per cent, or around $87 million.

However, this sum was slightly lower than the region's contribution of $89 million in the corresponding period last year.

The next highest contribution to turnover was from South Asia - 38 per cent, or around $57 million, in the quarter. This amount was higher than the contribution of $54 million from the region in the preceding year.

The company invested $1.5 million to open new outlets and upgrade existing outlets during the first quarter.

It had 596 Osim outlets across 34 countries as at March 31, up from 590 outlets in 32 countries as last Dec 31. In China, it has 274 Osim outlets across 43 cities.

Osim also reiterated its plans to open 30 to 40 outlets this year, but did not specify their locations.

It said its 216 GNC outlets were doing decently and GNC Taiwan was "progressing well".

GNC is a nutritional supplements retailer.

However, it dropped one city for its RichLife nutritional products brand, saying yesterday that it would now focus on seven cities "for better focus, control and efficiency". It had said in its full-year results statement in January that it would focus on eight cities for RichLife.

Earnings per share stood at 3.47 cents for the quarter, up from 3.02 cents the preceding year.

Net asset value per share was 29 cents as at March 31, up from 26 cents as at Dec 31 last year.

The board proposed an interim dividend of one cent per share to be paid on July 3 this year.

Osim's share price was flat at $2.03 on Tuesday.


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