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Q2 sales were $159 million due to the launch of uMagic but markets remained soft across the region.
Profit before tax was $29 million impacted by startup and operational cost pressures at TWG Tea and increases in rental.
Profit after tax was $22 million.
Today OSIM operates in 23 countries around the world.
For the 3 months ended 30 June 2015, sales were softer due to the overall weaker environment.
3 months net cash flow from operating activities was $11 million.
During the quarter, we invested $3.4 million to open new outlets, upgrade existing outlets and expand TWG Tea outlets in Singapore and North Asia.
Net cash outflow used in financing activities increased due to purchase of shares of $29 million in Q2 2015.
As at 30 June 2015, cash and cash equivalents of the Group stood at $404 million. Including fixed income investments of $38 million, total cash & cash equivalents and fixed income investments were $443 million.
We monitor continuously the performance of our outlets.
Total capital expenditure for the quarter was $3.4 million.
As at 30 June 2015, we were in a net cash position of $216 million. Including fixed income investments of $38 million, the total net cash and fixed income investments was $255 million.
Net assets as at 30 June 2015 were $487 million.
The Board is pleased to propose an interim dividend of 2 cents per share.
This has been another challenging quarter where retail sales across the core countries have been soft. Despite these challenges, our dominant brand has enabled us to maintain a stable gross margin and cash generative business. We are continuing to invest for growth supported by a strong balance sheet.
Q2 sales were $159 million and Q2 profit before tax was $29 million.
We have 560 OSIM outlets. China continues to be our No.1 market where we are in 45 cities with 251 outlets. New products including uMagic, uInfinity Luxe, uDiva, uHip, uSqueez Air, uTrek and uShape Music have sustained our dominant position in the market.
Our GNC outlets are doing well. We have a total of 220 GNC/RichLife outlets in ONI Global and we are growing our sales through new product launches.
TWG Tea has 47 outlets. We have opened 4 new outlets and are targeting to open about 11 new outlets for second half of the year.
We remain optimistic on the prospects for the remainder of the year following launch of uMagic in key markets and upcoming planned product launches.
During the quarter we bought back $29 million of shares.
The directors are pleased to recommend an interim dividend of 2 cents per share.