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Q1 sales were $150 million due to softer markets across the region.
Profit before tax was $18 million impacted by startup and operational cost pressures at TWG Tea and increases in wages and rental.
Profit after tax was $14 million.
Today OSIM operates in 22 countries around the world.
For the 3 months ended 31 March 2015, sales were softer due to the overall weaker environment.
3 months net cash flow from operating activities was $18 million.
During the quarter, we invested $3.5 million to open new outlets, upgrade existing outlets and expand TWG Tea outlets in North Asia.
Financing cash outflow decreased primarily because there was a bank loan repayment in Q1 2014.
As at 31 March 2015, cash and cash equivalents of the Group stood at $446 million. Including fixed income investments of $36 million, total cash & cash equivalents and fixed income investments were $482 million.
We monitor continuously the performance of our outlets.
Total capital expenditure for the quarter was $3.5 million.
As at 31 March 2015, we were in a net cash position of $256 million. Including fixed income investments of $36 million, the total net cash and fixed income investments was $292 million.
Net assets as at 31 March 2015 were $514 million.
The Board is pleased to propose an interim dividend of 1 cent per share.
This has been a challenging quarter where retail sales across the core countries has been soft and there have been no new major OSIM product launches. Despite these challenges, our dominant brand has enabled us to maintain a stable gross margin and highly cash generative business. We are continuing to invest for growth supported by a strong balance sheet.
Q1 sales was $150 million and Q1 profit before tax of $18 million.
We have 560 OSIM outlets. China continues to be our No.1 market where we are in 45 cities with 252 outlets. New products including uInfinity Luxe, uDiva, uHip, uSqueez Air, uTrek and uShape Music have sustained our dominant position in the market.
We have just launched a new massage chair uMagic in April with favourable response and will be introducing more innovative products this year.
Our GNC outlets are doing well. We have a total of 233 GNC/RichLife outlets in ONI Global and we are growing our sales through new product launches.
TWG Tea has 44 outlets. We are targeting to open about 15 new outlets this year.
With the upcoming planned new product launches we remain positive about the outlook for the remainder of the year.
The directors are pleased to recommend an interim dividend of 1 cent per share.