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We have achieved growth in profitability for 20 consecutive quarters.
Full year sales increased by $46 million to record $648 million and Q3 sales was $179 million +16%. The increase in sales was driven by higher consumer demand for OSIM products like uInfinity, uDivine App, uAngel, uPhoria Warm, uHug, uPixie, uCozy, uRelax, uPebble, uBio, uSlender, uShape and nutritional supplements like Taut, Stem C, Zhi and Liver Protector. TWG Tea became a subsidiary in October 2013 and has also contributed to the sales.
Profit before tax reached a high of $129 million and Q4 profit before tax was $34 million +10%. The better performance was due mainly to an increase in sales and better productivity. The increase in operating expenses was mainly due to increases in wages and rental but our better productivity in sales per outlet resulted in better profits. For more details, kindly refer to the notes to the accounts.
We are pleased that the core business of OSIM continued to grow during the year. Our nutritional supplements subsidiary ONI Global also grew profits. Our share of profits from associated companies was better with contributions from our joint venture factory DT-OSIM and TWG Tea (prior to becoming a subsidiary in October 2013).
Profit after tax for the year was a record $102 million +17%.
Revenue by Region
Today OSIM operates in 31 countries around the world.
All regions contributed to better sales growth for the quarter and year.
For the 3 months and year ended 31 December 2013, we had sales growth with a better product mix of massage chairs, massage sofas, foot massagers, head massagers, neck and shoulder massagers, nutritional supplements and luxury tea.
During the year, operating EBITDA grew 11% to $140 million due to a better product mix and higher productivity per man per outlet.
12 months net cash flow from operating activities was $105 million. The operating cash flow was in line with our operating profit for the year.
During the year, cash flow from investing activities decreased mainly due to repayment of loan from TWG Tea and no increase in fixed income investments. We invested $12 million to open new outlets and upgrade existing outlets (2012: $12 million).
Financing cash outflow decreased mainly due to less treasury share purchases of $8 million (2012: $15 million). Total dividends paid amounted to $36 million (2012: $36 million).
As at 31 Dec 2013, the cash and cash equivalents of the Group stood at $267 million. Including fixed income investments of $32 million, total cash & cash equivalents and fixed income investments was $299 million.
Global Network of Outlets
During the year, we increased profitability within existing outlets. We regularly review performance of our outlets and there were selected closures of non-performing outlets.
Total capital expenditure for the year was $12 million.
As at 31 Dec 2013, we were in a net cash position of $113 million. Including fixed income investments of $32 million, the total net cash and fixed income investments was $145 million.
Net assets as at 31 Dec 2013 were $271 million.
As a result of the record performance, the Board is pleased to propose a final dividend of 2 cents per share. Inclusive of interim dividends, the total dividends for the year are 6 cents per share (2012: 4 cents per share plus special dividends of 2 cents per share).
We have achieved 5 years of record profit and 20 consecutive quarters of profit growth. We are pleased with the record performance and we expect our improvement in productivity and growth in profitability to continue to be driven for a number of years 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 enabled us to achieve record profit. We expect to continue to create higher consumer demand for OSIM products like uInfinity, uDivine App, uAngel, uPhoria Warm, uHug, uPixie, uCozy, uRelax, uPebble, uBio, uSlender, uShape and nutritional supplements like Taut, Stem C, Zhi and Liver Protector.
We have 600 OSIM outlets. In China, we are in 45 cities with 272 OSIM outlets. We have opened 24 new outlets and closed 30 under performing outlets during the year in China. For this year, we are targeting to open 20 to 30 OSIM outlets.
Our 221 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 245 GNC/RichLife outlets in ONI Global.
In October 2013, we became the 53.7% majority owner of TWG Tea. In January 2014, we increased our ownership to 70%. TWG Tea has 26 outlets and we are targeting to open about 20 outlets this year.
We have grown our sales and with new product pipeline, we expect our businesses to remain strong in 2014.
The directors are pleased to recommend a final dividend of 2 cents per share (annual dividend of 6 cents per share).