OSIM run of record profits loses steam
Singapore
AFTER 22 consecutive quarters of record profits, the fine run of lifestyle products company OSIM International came to an end in the three months ended Sept 30, 2014.
Net profit fell 28 per cent to S$16.4 million, compared to S$22.7 million a year ago. Revenue edged up slightly to S$158.2 million, up 3 per cent compared to S$153 million the same period last year. A one-cent interim dividend was declared, unchanged from a year ago.
OSIM chief financial officer Peter Lee told a group of analysts and investors on Tuesday evening: "Our fundamentals are positive. We are the dominant brand in the market." The profit fall of about S$6 million can be attributed to "several millions" of legal costs as well as investment costs to open new TWG Tea outlets in Shanghai, Guangzhou, and Taiwan. OSIM subsidiary TWG Tea, a luxury tea company, is currently embroiled in two lawsuits: one involving its trademark logo in Hong Kong, and another involving TWG Tea's co-founder Manoj Murjani, who has since left. The first case involved a tea company called Tsit Wing. Mr Lee said the case was heard in October and the firm expects a judgement in the next few mon…
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