The Hour Glass sees 35% jump in first-half profit despite higher operating costs

SINGAPORE - Luxury watch retailer The Hour Glass on Wednesday reported a 35 per cent jump in net profit for the six months ended Sept 30 to $84.6 million, compared with the same period in 2021, despite higher operating costs.

Revenue rose 18 per cent in the half-year to $555.5 million, compared with the year-ago period, said the mainboard-listed company.

Costs and expenses also increased, by 15 per cent to $466.7 million in the first half. The company noted that the higher operating expenses were due to increased staff costs, rental expenses and advertising and promotion activities.

Earnings per share in the first half stood at 12.58 cents, a 41 per cent jump from the corresponding period in 2021.

The company has approved an interim dividend of two cents per ordinary share.

Although The Hour Glass expects to continue to be profitable in the second half and for the full financial year, it said geopolitical factors may affect buyer sentiment.

“The continuing war in Ukraine and increasingly negative economic and political uncertainties may adversely impact consumer sentiment, particularly with luxury consumers and watch buyers,” the company said.

The Hour Glass shares rose six cents, or 3.1 per cent, to $2.03 at 11.22am on Thursday, after its results announcement.

THE BUSINESS TIMES