The Straits Times / The Business Times News on OSIM
Osim roars on with 53% H1 earnings rise
By Joyce Koh - 28 July 2005
The Business Times BLAZING ahead with its aggressive expansion plans, Osim International has turned in a record performance for the first half of this financial year. The mainboard-listed company yesterday posted a 53 per cent rise in first half earnings to $20.1 million from $13.1 million previously. Its turnover for the first half also grew 38 per cent to $221.3 million from $160.1 million in the same period last year, as contributions from newly-acquired Global Active made its presence felt. With the good results, Osim yesterday declared an interim dividend of 0.56 cents per share, which will cost it $2.5 million. The company recorded growth across all regions, with expansion coming most strongly from its America/Africa/Europe market, where turnover grew 215 per cent to $17 million. Osim also marched on in setting up new stores, adding 188 outlets to its owned and franchised point-of-sales network for the 12 months to June 30 this year - 42 were new Osim outlets, while 146 were added from Global Active. There are now a total of 718 outlets in the group. 'The positive response to our new and expanded range of Osim products is a strong endorsement from our customers of our product development capabilities,' said Osim's CEO Ron Sim. 'At the same time, we continue the remodelling of existing outlets to Osim Focus outlets as we expand new point-of-sales outlets,' Mr Sim said. Mr Sim is hoping to build his company's presence in the US dramatically, after Osim's purchase of American specialty retailer Brookstone earlier in the year. Last Monday, Osim reduced its offer price for Nasdaq-listed Brookstone to US$20 a share from US$20.50 after the latter's weaker-than-expected financial performance in the latest quarter. But yesterday, Mr Sim maintained upbeat that the purchase, expected to be completed in the third quarter of the financial year, will give the company access to 100 million households in the US through 290 Brookstone stores. 'This move will broaden and enhance our earnings as we work towards building a global brand,' he said.
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