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Today OSIM operates in 23 countries around the world.
Q3 sales were $142 million as markets remained soft across the region. The launch of uMagic had some positive impact.
Profit before tax was $10 million impacted by startup and operational costs at TWG Tea. There were also legal fees relating to TWG Tea legal cases.
Profit after tax was $6 million.
3 months cash flow generated from operations $12 million.
During the quarter, we invested $3.3 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 mainly due to purchase of shares of $4 million in Q3 2015.
As at 30 September 2015, cash and cash equivalents of the Group stood at $384 million. Including fixed income investments of $39 million, total cash & cash equivalents and fixed income investments were $423 million.
We monitor continuously the performance of our outlets.
Total capital expenditure for the quarter was $3.3 million.
As at 30 September 2015, we were in a net cash position of $193 million. Including fixed income investments of $39 million, the total net cash and fixed income investments was $232 million.
Net assets as at 30 September 2015 were $462 million.
The Board is pleased to propose an interim dividend of 1 cent per share.
This has been another challenging quarter where retail sales across the core countries have been soft. This quarter has seen further challenges from gyrating markets and currency turmoil in the region. Despite these challenges, our dominant brand has enabled us to maintain a stable gross margin and cash generative business with cash and cash equivalents growing again in the quarter. We are using our strong balance sheet to invest in new products and continuing our marketing activities.
Q3 sales were $142 million and Q3 profit before tax was $10 million. For nine months, we have incurred legal fees of $7 million for TWG Tea legal cases.
We have 546 OSIM outlets. China continues to be our No.1 market where we are in 45 cities with 244 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 214 GNC/RichLife outlets in ONI Global and we are growing our sales through new product launches.
TWG Tea has 49 outlets. We are targeting to end the year with 52 outlets.
The core countries are expected to be challenging but we remain cautiously optimistic on the prospects for the remainder of the year following the launch of uMagic in key markets and upcoming planned product launches.
During the nine months, we bought back $33 million of shares.
The directors are pleased to recommend an interim dividend of 1 cent per share.