SINGAPORE - Health and wellness company Eu Yan Sang International posted marginal improvements in its second quarter revenue, thanks to higher sales from Singapore and Australia.
Revenue for the three months ended Dec 31 last year inched up 1 per cent higher at S$85.61 million compared with the same period a year earlier, the company said in release on Friday (Feb 12).
However, net profit for the quarter plunged 75 per cent to S$498,000 from S$1.98 million a year ago on lower foreign exchange gain and gross margin contribution, and higher distribution and selling expensesas.
For the half year ended Dec 31, revenue dipped by 4 per cent year-on-year due to lower revenue from the wholesale segment in Hong Kong and the overall weakening of the Malaysian Ringgit.
Net profit for the half year decreased 87 per cent to S$348,000, following the decline in revenue.
"We are glad that Hong Kong's rate of decline is showing signs of moderation and an improvement in Malaysia," said chief executive Richard Eu in the release.
Decreased spending by mainland tourists and the ongoing challenging retail environment were blamed for the lower sales from Hong Kong.
But revenue growth in Australia and Singapore has helped cushioned against revenue reduction in other markets, said the company.
"We are looking to expand the retail network within Australia and Malaysia, and wholesale network in Singapore to continue on this revenue rejuvenation journey for the group," said Mr Eu.
He added that outlook in China is encouraging due to a series of strategic joint ventures. "I am optimistic that these collaborations will provide the synergy of skills, expertise and resources that will offer an added momentum to our business operations there."