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We have achieved growth in profitability for 17 consecutive quarters.
Q1 revenue was $151 million. The increase in sales was driven by the launch of new products.
Profit before tax reached a high of $32 million. The better performance is due mainly to increase in sales and better productivity. We are pleased that this positive growth is broad-based.
Profit after tax for the quarter was at a record $25 million.
Revenue by Region
Today OSIM operates in 34 countries around the world.
For the 3 months ended 31 March 2013, we had sales growth with a better product mix of massage chairs, massage sofas, foot massagers, head massagers, neck and shoulder massagers and nutritional supplements.
uDivine App, uDivine, uAngel, uPhoria, uHug, Taut, Zhi, Stem C, Liver Protector and other key products continue to sell well.
EBITDA grew to a record $34 million due to better product mix and higher productivity per man per outlet.
3 months net cash flow from operating activities was $26 million +49%.
During the quarter, we bought $3.8 million of treasury shares and there were short-term fixed income investments of $4.2 million.
We invested $1.5 million to open new outlets and upgrade existing outlets.
At 31 March 2013, the cash and cash equivalents of the Group stood at $220 million. Including fixed income investments of $33 million, total cash & cash equivalents and fixed income investments is $253 million.
Global Network of Outlets
During the quarter, we increased profitability within existing outlets.
Total capital expenditure for the quarter was $1.5 million.
Our key focus and priority is to build a strong balance sheet.
As at 31 March 2013, we are in a net cash position of $79 million. Including fixed income investments of $33 million, the total net cash and fixed income investment is $112 million.
Net assets as at 31 March 2013 were $224 million.
As a result of the record performance, the Board is pleased to propose an interim dividend of 1 cent per share.
We are pleased with the record performance for Q1 2013 and we expect that our growth will continue to be driven by market leadership, continuous innovation and productive execution.
OSIM is Asia's No1 brand in well being and healthy lifestyle products.
Our product innovation and competitive positioning have enable us to achieve record profits. We expect to continue to create higher consumer demand for OSIM products like uDivine App, uAngel, uPhoria, uHug, uPixie, uCozy, uRelax, uPebble, uBio, uSlender and nutritional supplements like Taut Whitening, Stem C, Zhi and Liver Protector.
We have 596 OSIM outlets. In China, we are in 43 cities with 274 OSIM outlets. For this year, we are targeting to open 30 to 40 OSIM outlets.
Our 216 GNC outlets are doing well. GNC Taiwan is progressing well. For RichLife, we will focus on seven key cities for better focus, control and efficiency. There is a total of 252 GNC/RichLife outlets in ONI Global.
The directors are pleased to recommend an interim dividend of 1 cent per share.