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We have achieved growth in profitability for 19 consecutive quarters.
Q3 revenue was $153 million +7%. The increase in sales was driven by higher consumer demand for OSIM products like uInfinity, uDivine App, uAngel, uPhoria, uHug, uPixie, uCozy, uRelax, uPebble, uBio, uSlender, uShape and nutritional supplements like Taut, Stem C, Zhi and Liver Protector.
Profit before tax was $30 million +13%. 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.
We are pleased that the core business of OSIM continued to grow during the quarter. 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.
Profit after tax for the quarter was $23 million +16%.
Revenue by Region
Today OSIM operates in 34 countries around the world.
All regions contributed to better sales growth for the quarter.
For the 3 months ended 30 September 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.
Operating EBITDA grew 7% to $31 million due to a better product mix and higher productivity per man per outlet.
3 months net cash flow from operating activities was $16 million. The healthy operating cash flow was in line with our operating profit for the quarter.
Cash flow from investing activities increased mainly due to repayment of loan from TWG Tea. We invested $2.3 million to open new outlets and upgrade existing outlets during Q3.
Financing cash outflow was mainly due to the payment of the interim dividends of $7.2 million. During the quarter, we also bought $1.2 million of treasury shares.
As at 30 Sep 2013, the cash and cash equivalents of the Group stood at $250 million. Including fixed income investments of $33 million, total cash & cash equivalents and fixed income investments was $283 million.
Global Network of Outlets
During the quarter, we opened 17 OSIM outlets and 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 quarter was $2.3 million.
As at 30 Sep 2013, we were in a net cash position of $102 million. Including fixed income investments of $33 million, the total net cash and fixed income investments are $135 million.
Net assets as at 30 Sep 2013 were $236 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 strong performance for Q3 2013 despite a tough macro environment and we expect our improvement in productivity and growth in profitability will continue to be driven for a number of years by market leadership, continuous innovation and productive execution.
OSIM is Asia's No1 barnd in well being and healthy lifestyle products.
Our products innovation and competitive positioning have enabled us to achieve a 16% growth in earnings. We expect to continue to create higher consumer demand for OSIM products like uInfinity, uDivine App, uAngel, uPhoria, uHug, uPixie, uCozy, uRelax, uPeddle, uBio, uSlender, uShape and nutritional supplements like Taut, Stem C, Zhi and Liver Protector.
We have 596 OSIM outlets. In China, we are in 45 cities with 268 OSIM outlets. for this year, we are targeting to open 20 to 30 OSIM outlets.
Our 219 GNC outlets are doing well. GNC Taiwan is progressing well. For RichLife, we will focus on seven key cites for better focus, control and efficiency. There is a total if 249 GNC/RichLife outlets in ONI Global.
In October 2013, we became the 53.7% majority owner of TWG Tea. This is expected to be earnings accretive for OSIM this year.
We have grown our sales and with new product pipeline, we expect our businesses to remain strong 2013.
The directors are pleased to recommend an interim dividend of 1 cent per share (total dividends for 9 months of 4 cents per share).