Cortina Holdings delivers 19% increase in H2 earnings on bigger sales margin

LISTED luxury watch retailer Cortina Holdings has delivered better earnings for the second half-year to March, mainly due to improved sales margin.

In the financial results released on Wednesday to the Singapore Exchange, it posted S$20.4 million in its net earnings for H2, 19 per cent higher than the S$17.1 million for the corresponding period a year ago.

The uptick in the bottom line was mainly attributable to a slightly bigger margin,  said Cortina in the financial statement. 

Sales margin increased to 27.6 per cent in H2, up from 26 per cent in the corresponding period a year ago. For the full year, sales margin was at 27.2 per cent, versus 25.3 per cent a year ago.

Revenue edged up 5 per cent year on year from S$245.6 million to S$256.8 million for H2. 

For the full year, earnings rose 36 per cent from S$29 million to S$39.3 million; revenue was 11 per cent higher at S$513.8 million, against S$460.8 million a year ago.

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The company's financial statements show that its full-year revenue was lifted by a bigger increase - 19.4 per cent - in the first half, versus only 4.6 per cent improvement in the second half.

Earnings per share for FY 2020 was 23.7 Singapore cents, up from 17.5 cents a year ago.

Net asset value per share stood at S$1.40 as at end-March, an improvement from about S$1.20 a year ago.

Cortina said its balance sheet is healthy, with cash and bank balances at S$114.4 million as at end-March, compared with $81.3 million a year ago. Inventories, at S$143.3 million, were S$19.4 million lower than last year's, due to more stringent controls over inventories.  Short-term bank borrowings fell by S$17.9 million.

The retailer has proposed an interim dividend of four Singapore cents per share to be paid on July 24; the final and special dividends will be recommended at a later date. No interim dividend was declared a year ago.

The retailer said that the impact of the pandemic on its business cannot be quantified with certainty at the moment, as it continues to evolve.