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Cortina Q4 profit more than doubles to S$7.8m on better sales margin, retail network expansion

LUXURY timepiece retailer Cortina Holdings clocked higher fiscal fourth-quarter profit of S$7.83 million, more than double from the previous corresponding period, largely due to higher revenue and better sales margins.

For the quarter, revenue was up 25.3 per cent to S$132.92 million from the year-ago period, boosted by expansion in the group's retail network in Malaysia and Thailand.

Earnings per share almost doubled to 13.5 Singapore cents in fiscal 2018 from 7.1 Singapore cents in 2017.

The group has declared a special cash dividend of 2.5 Singapore cents per ordinary share, and a final cash dividend of two Singapore cents per ordinary share, to be paid once approval has been sought at its July 26 AGM.

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Sales margin increased to 23.6 per cent in Q4, compared to 22.8 per cent in the previous quarter. Sales margin came in at 23.2 per cent for fiscal 2018 as compared to 22.9 per cent from last year.

Operating expenses also climbed, rising 13.6 per cent in Q4 to S$21.3 million due to higher credit card expenses as a result of higher revenue, higher employee benefit expenses and a donation made to a charity.

For the fiscal year as a whole, Cortina's profit attributable to company owners rose 89 per cent to S$22.35 million on the back of a 19 per cent growth in revenue to S$466.29 million.

Barring unforeseen circumstances, mainboard-listed Cortina expects it will remain profitable.

It announced its earnings after the counter closed at S$0.84 on Friday, up 0.6 per cent.