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Today OSIM operates in 23 countries around the world.
For the 3 months ended 31 March 2016, sales remained soft due to the overall weaker environment.
Profit before tax for Q1 was $11 million impacted by declining sales coupled with startup and operational cost pressures at TWG Tea.
Profit after tax was $8 million.
Net cash and cash equivalent was negative $0.5m for the quarter.
3 months net cash flow from operating activities was $11.3 million.
During the quarter, we invested $1.2m to open new and upgrade existing outlets and $3.9m in investment securities.
Financing cash outflow also increased quarter on quarter, primarily due to lower utilisation of bills payable and dividends paid for the quarter.
As at 31 March 2016, cash and cash equivalents of the Group stood at $354 million. Including fixed income investments of $42 million, total cash & cash equivalents and fixed income investments were $395 million.
We continue to monitor the performance of our outlets
Total capital expenditure for the quarter was $1.2 million.
As at 31 March 2016, we were in a net cash position of $166 million. Including fixed income investments of $42 million, the total net cash and fixed income investments was $208 million.
Net assets as at 31 March 2016 were $448 million.
Another quarter of declining sales across the core countries as markets remain soft and the challenge will be to maintain margins amid rising fixed cost pressure.
Due to prolonged soft market conditions, we will also adopt a cautious approach to invest for growth and continue to rationalize unprofitable stores. We remain cautiously optimistic on the prospects for the remainder of the year with new products including uMagic, uInfinity Luxe, uDiva Classic and uPamper2 to sustain our position in the market.
Q1 sales were $138 million with a profit before tax of $11 million.
OSIM outlets were reduced to 516 outlets and GNC/RichLife to 194 outlets, mainly from the exit of the Australian nutrition market. Meanwhile TWG Tea outlets remains unchanged at 52 outlets with a cautious approach to open new outlets for the year.