Singapore worst market for Osim International, Q4 profit falls 66%

SINGAPORE - Singapore was the worst performing market for OSIM International the fourth quarter last year, as profits fell amid a weaker economic environment.

Profits for the three months fell 66 per cent to S$9.3 million and revenue fell 5 per cent to S$168.7 million.

Profits were also impacted by one off losses from legal costs and from a subsidiary closing down its GNC Australia operations.

Earnings per share for the three months came in at 1.3 cents, down from 3.5 cents last year. Net asset value came was 51 cents as at Dec 31, down from 56 cents as at Dec 31, 2014.

A dividend of 2 cents per share was declared for the three months.

A bright spot that has emerged, however, is that rental costs may increase less in the coming year, founder and chairman Ron Sim told a results briefing on Thursday.

"Rental the last few years has been high, has gone up. Guess what now you can negotiate.

"So I think its turning more into a buyer's market versus a leasers market. So there's some leverage now in terms of rental going forward, which is good," he said.

jkoh@sph.com.sg