The Straits Times / The Business Times News on OSIM

OSIM posts record half-year profit of $20m

STRONG demand for healthy lifestyle products sent first-half net profits at OSIM International surging by 53 per cent to a record $20.1 million.

Revenue was also in the pink of health, rocketing 38 per cent to $221.3 million.

Founder and chief executive Ron Sim said good sales and an expansion in retail outlets allowed OSIM to outperform its long-term target of between 20 per cent and 30 per cent earnings growth.

'The positive response to our new and expanded range of OSIM products is a strong endorsement from our customers of our new product development capabilities,' said Mr Sim.

He added that opening new retail outlets and remodelling existing ones also contributed to the company's record performance.

Revenue for the second quarter alone jumped by 47 per cent, aided by the acquisition of Global Active in April.

Global Active operates 146 franchises globally for health supplement distributor General Nutrition Centre, also known as GNC.

With the acquisition, these franchises bring OSIM's total number of point-of-sales outlets to 718 in more than 20 countries.

OSIM also said that it has obtained shareholder approval to proceed with the acquisition of American speciality retailer Brookstone. (Please refer to clarification below)

The company has proposed an interim dividend of 0.56 cent a share.

Earnings per share climbed to 4.49 cents from 2.94 cents a year ago.

Net asset value per share rose by four cents to 32 cents.

In addition, Mr Sim said OSIM expected second-half as well as full-year revenue and profit to exceed last year's effort.

Clarification of The Straits Times Article Dated 28 July 2005 by OSIM
We refer to The Straits Times article dated 28 July 2005 entitled "OSIM posts record half-year profit of $20m".

The article reported that "OSIM also said that it has obtained shareholder approval to proceed with the acquisition of American speciality retailer Brookstone."

We wish to clarify as follows:

"OSIM also said that it has obtained shareholder approval to proceed with investing up to S$150 million in OSIM Brookstone Holdings, LP. The strategic acquisition by way of merger is expected to be completed by third quarter this year and is subject to customary and regulatory shareholder approvals in US."