The Straits Times / The Business Times News on OSIM

OSIM Q4 net profit increases 54% to $16.2m

NEW products, a larger retail network and continued strong branding led OSIM International to record earnings in the last quarter and the whole of 2005.

Mr Sim: Upbeat on 2006, he plans to expand OSIM globally.

Net profit in Q4 2005 rose 54 per cent to $16.2 million as revenue increased by 52 per cent to $147.8 million.

For the financial year ended Dec 30, 2005, net profit was up 53 per cent at $46.7 million while revenue jumped 51 per cent to $502.5 million. Earnings per share increased to 10.4 cents from 6.8 cents. Operating cash flow was positive, with net cash from operating activities up by 109 per cent to $83 million.

OSIM proposed a final dividend of one cent per share. Including the interim dividend paid earlier, the total payout for 2005 amounted to $7 million. In 2004, it paid 0.8 cent per share in ordinary dividends and a special dividend of 0.2 cent per share.

Along with its results, the healthy lifestyle products group also announced a one-for-five bonus issue yesterday to mark its 25th anniversary.

'The key success factors behind the record results were a continued focus on a strong OSIM brand, effective and direct control over an expanding global point-of-sales network and the introduction of new and innovative healthy lifestyle products,' OSIM said.

Revenue growth was broad-based, and the improved results included contributions from Global Active Ltd (GAL) which became an OSIM subsidiary in April 2005 and US-based Brookstone Inc, which was acquired in October 2005.

New products launched include uZap, an oscillating belt massager, which proved to be a major success, OSIM said.

Operating expenses were higher in Q4 2005 due to business expansion and the consolidation of GAL.

OSIM said it expects FY2006 revenue and net profit to be higher than in FY2005.

'Our core OSIM operations continued to perform well across all key markets in 2005. Our next step is expanding the global platform,' said OSIM chief executive Ron Sim.

Briefing analysts and the media, Mr Sim said a key focus will be to make Brookstone less reliable on Christmas sales by increasing its revenue in the first three quarters of the year.