Cortina posts 11% fall in H2 net profit; proposes 16-cent dividend
LUXURY watch retailer Cortina charted an 11 per cent fall in its net profit to S$38.6 million for H2 ended Mar 31, its bottom line weighed by a one-off write-back.
The company’s revenue for the half-year rose 7 per cent to S$419.7 million, thanks to a better sales mix and its strategy of introducing new brands such as Jacob & Co, Laurent Ferrier and Parmigiani, Cortina said in its earnings report on Monday (May 29).
However, the company also had a one-off write-back of stock provision, as an exchange of inventory in the prior year was not present in the latest H2 period. Cortina’s operating expenses were also up 2.3 per cent to S$84.5 million, which it attributed to higher rental expenses with its new store, as well as charitable donations for its 50th anniversary.
On a full-year basis, the company’s net profit rose 11 per cent to S$76.5 million, on the back of a 15 per cent revenue increase to S$826.6 million. This included S$785 million in revenue from the retail segment, and S$159.5 million from the wholesale segment. Its full-year margin remained steady at 32.9 per cent.
With the latest set of earnings, Cortina proposed a final dividend of 2 cents per share and a special dividend of 14 cents per share. This is an increase from the 12 cents per share dividend in H2 last year – comprising a 2-cent final dividend, 5-cent special dividend and another 5-cent dividend for the company’s 50th anniversary.
The company noted that “the uncertain global economic outlook is likely to negatively affect consumer sentiment”, and business conditions have also become more challenging.
“Notwithstanding the headwinds, the group expects to remain profitable in the coming year, barring unforeseen circumstances,” it said. The company had S$166.5 million in cash as at end-March and S$15.7 million in borrowings.
Cortina shares ended Monday flat at S$3.80.
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