Osim Q3 net profit down 62%

OSIM International's net profit dropped 62 per cent in the third quarter.
OSIM International's net profit dropped 62 per cent in the third quarter.PHOTO: OSIM

SINGAPORE - Lifestyle products group OSIM International posted a 62 per cent drop in net profit in the third quarter due to soft retail sales, market volatility and currency turmoil.

Earnings for the three months to Sept 30 came in at S$6 million, down from S$16 million a year earlier.

Revenue dropped 11 per cent to S$142 million.

Earnings per share for the quarter was 0.82 cents, down from 2.1 cents last year. Net asset value was 53 cents as at Sept 30, down from 56 cents as at Dec 31 last year.

"This has been another challenging quarter where retail sales across the core countries have been soft," said the company in its filing with the Singapore Exchange on Tuesday (Oct 27).

But it noted that its dominant brand has enabled the company to "maintain a stable gross margin and cash generative business with cash and cash equivalents growing again in the quarter".

"We are using our strong balance sheet to invest in new products and continuing our marketing activities," said the company.

Osim declared an interim dividend of one cent a share, unchanged from the same period last year. It will be paid on Jan 6, 2016. The book closure date is on Dec 31 at 5pm.

Its shares closed 1.5 cents, or 0.9 per cent, down at S$1.615 on Tuesday.

kohping@sph.com.sg