Higher sales in Malaysia and Indonesia sent second-quarter earnings skyrocketing at Courts Asia Limited.
Net profit for the three months to Sept 30 surged 253 per cent to $6 million compared with the same period last year, while revenue increased 4.2 per cent to $186.1 million.
Turnover from Malaysia, which contributed to 35 per cent of the group's total turnover in the second quarter, rose 27 per cent (in ringgit terms) compared with last year, mainly due to bulk sales of digital products.
AT A GLANCE
$6 million (+253%)
$186.1 million (+4.2%)
Contributions from Singapore, which made up 63.3 per cent of second-quarter revenue, fell 2.6 per cent, mainly because of the retail sector, Courts said.
Indonesia registered sales growth of 5.8 per cent (in rupiah terms) from the previous quarter after opening two new stores in May. Indonesia contributed to 1.7 per cent of the group's total turnover.
Executive director Terry O'Connor told a briefing by conference call that he expects Courts to have around nine stores in Indonesia by this point next year.
Mr O'Connor, who is also the chief executive, was pleased at how the firm reined in expenses.
"Pretty much every expense is either flat or down other than salaries and wages - but that effectively is a by-product of the performance of the company," he added.
Earnings per share for the three months rose from 0.31 cent last year to 1.13 cents this year while net asset value per ordinary share fell from 55.1 cents as at March 31 to 52.2 cents as at Sept 30.
Mr O'Connor said Singapore's retail environment remains subdued but Courts expects continued demand for household appliances and furniture, given the expected increase in supply of HDB flats next year.
Malaysia's recently announced Budget is likely to boost growth and home ownership, he added, likely driving demand for affordable furniture and household appliances in the medium term.
The results were announced after the market closed.
Courts Asia shares closed unchanged at 37 cents yesterday.