The Straits Times / The Business Times News on OSIM

Osim's profit rises a healthy 30%

By Lorna Tan - 22 April 2003
The Straits Times

HEALTHY lifestyle products maker and retailer Osim International yesterday said that its first-quarter net profit rose 29.3 per cent to $4.2 million from the same period last year, boosted by higher sales and tax savings.

For the first three months of this year, turnover soared by 25 per cent to $52.5 million, from $42 million in the same period last year.

Since the Sars outbreak, business has been 'brisk' for Osim's hygiene product line, which includes cleaning machines and air purifiers, as consumers become more aware of good home hygiene, it said.

At the results briefing, Osim chairman Ron Sim observed that shopping activities are gradually resuming among consumers here and in Hongkong. The impact of the epidemic on Osim's business is expected to be positive in the current quarter.

For the first quarter, Osim said the improvement in revenue was broad-based, with double-digit percentage growth in sales in almost every key market, including Hongkong, Taiwan, Singapore and China.

Sales in China exhibited strong growth of 91 per cent to $6.3 million. This contrasts with Malaysia, where turnover growth inched up 2 per cent to $5.9 million because of a high base in the same period last year.

Earnings per share rose to 1.13 cents from 0.87 cent while net asset per share grew to 27.6 cents from 20.7 cents previously.

Osim will divest of non-core assets and focus solely on its core healthy lifestyle business.

It is in the midst of looking for a buyer for its 22,000 sq ft, 11-storey building at Genting Lane, which was purchased for about $9 million in 1996.