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Full year sales increased by $43 million to a record $691 million and Q4 sales were $178 million. Profit before tax reached a high of $132 million and Q4 profit before tax was $34 million, despite startup and operational cost pressures at TWG Tea and increases in wages and rental.
Other income fell mainly because there was a fair value gain in Q4 2013. Other operating expenses are lower as we had impairment and foreign translation losses in Q4 2013.
Profit after tax for the year was a record $102 million (+1%) while Q4 profit after tax was $27 million.
Revenue by Region
Today OSIM operates in 29 countries around the world.
For the 3 months ended 31 December 2014, sales were steady despite the overall weaker environment.
3 months net cash flow from operating activities was $39 million.
During the quarter, we invested $7.5 million to open new outlets, upgrade existing outlets and expand development of TWG Tea outlets in North Asia. Financing cash outflow increased primarily due to the purchase of treasury shares amounting to $12 million.
As at 31 December 2014, the cash and cash equivalents of the Group stood at $428 million. Including fixed income investments of $34 million total cash & cash equivalents and fixed income investments were $462 million.
Global Network of Outlets
We review continuously the performance of our outlets - we opened 14 OSIM outlets and closed 32 non-performing outlets in China (254 outlets in China).
During the quarter, we opened 6 TWG Tea outlets.
Total capital expenditure for the quarter was $7.5 million.
As at 31 December 2014, we were in a net cash position of $242 million. Including fixed income investments of $34 million, the total net cash and fixed income investments was $276 million.
Net assets as at 31 December 2014 were $492 million.
The Board is pleased to propose a final dividend of 2 cents per share.
Our fundamentals remain positive as OSIM is the dominant brand in healthy lifestyle products in our 5 key countries. Despite a challenging year, we managed to attain 8% growth in operating EBITDA and 1% earnings growth. We are not resting, we are continuing to invest for future growth supported by a strong balance sheet.
We are pleased to achieve record sales of $691 million and record profit before tax of $132 million for the year.
We have 561 OSIM outlets. China continues to be our No.1 market where we are in 45 cities with 254 outlets. New products like uInfinity Luxe, uDiva, uHip, uSqueez Air and uShape Music will help us to sustain our dominant position in the market and we will be introducing more innovative products this year.
Our GNC outlets are doing well. We have a total of 238 GNC/RichLife outlets in ONI Global and we are growing our sales through new products.
TWG Tea has 43 outlets. In Q4, we opened 6 new outlets. We are targeting to open 15 to 20 new outlets this year and are creating new lines of luxury tea.
The directors are pleased to recommend a final dividend of 2 cents per share bringing it to a total of 6 cents per share for 2014.