Eu Yan Sang returns to the black in Q2, with net profit of $4.7 million

TRADITIONAL Chinese medicine retailer Eu Yan Sang returned to the black, with a second quarter net profit of $4.7 million.

The company reported a loss of $2.8 million in the same period in 2011. This stemmed from an $8.8 million impairment made in writing off the equity investment in Healthzone.

Revenue for the three months to Dec 31 rose by 12 per cent to $77.9 million.

Operating profit fell by 15 per cent to $6.6 million, mainly due to higher operating expenses in Australia and higher rentals in the core markets.

Revenue for the retail segment increased by 10 per cent to $61.5 million.

Wholesale revenue rose by 26 per cent to $10.7 million, driven by strong performances in Hong Kong and Australia, whereas clinic revenue was maintained at a similar level to the corresponding period last year.

Earnings per share amounted to 1.05 cents compared to a loss of 0.63 cent previously while net asset value per share eased to 20.5 cents compared to 30.5 cents as of June 30.

Looking ahead, Eu Yan Sang said it remains cautiously optimistic, inline with moderate economic growth forecasted in its core markets for 2013.

The company expects the performance of its corelines of business to continue to be robust and cashflow generating,while its new investments in China and Australia will continue to demonstrate improvements in its operations.

Eu Yan Sang shares eased half a cent to 62.5 cents.

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