The Straits Times / The Business Times News on OSIM

OSIM sets its sights on $3b in global revenues by 2013

OSIM International expects to massage $3 billion in revenues out of the 3,000 outlets it expects to have around the world by 2013.

COMING SOON: OSIM will roll out an MP3 player that doubles as a massager and the iSurfer, a massage chair that simulates the surfing movement, says Mr Sim. -- ARTHUR LEE/BT

The ambitious target was revealed yesterday after the lifestyle products group posted a 53 per cent surge in net profits to $46.7 million last year, up from a restated $30.6 million in the previous year.

To celebrate its 25th anniversary, OSIM is sweetening its recommended final dividend of one cent per share with a proposed bonus share issue of one new share for every existing five shares. Revenues rose 51 per cent to $502.5 million for the year ended Dec 31. OSIM expanded its outlets by 476 to 1,036, thanks largely to its acquisition of United States-based Brookstone and its 304 outlets last October.

Revenues included contributions from Brookstone and health supplement retailer Global Active, which OSIM acquired in April last year.

Earnings per share rose to 10.4 cents, up from 6.84 cents a year ago, while net asset per share rose eight cents to 36 cents as at Dec 31.

OSIM will roll out at least two new products each quarter this year, said chairman Ron Sim yesterday. The first to hit the shelves soon will be an MP3 player that doubles as a massager, and the iSurfer, a massage chair that simulates the surfing movement.

Sales in North Asia continued to make up the bulk - 58 per cent - of OSIM's revenues last year but turnover from its newer markets in the United States, Africa, Europe, the Middle East and Oceania grew at a blistering 403 per cent and chipped in 12 per cent of group revenues.

Mr Sim is 'optimistic' about higher revenues and earnings this year and has set his eyes on hitting the $3 billion turnover mark by 2013.

Chief financial officer Peter Lee expects Brookstone to be 'marginally accretive' to earnings this year, as OSIM improves the store layout and changes its sales process to turn what is mainly a Christmas season business into an all-year-round enterprise. Brookstone will set up shop in Asia early next year, said Mr Sim.

graceng@sph.com.sg