Cortina sees H1 net profit fall 18.5 per cent amid economic uncertainties

LUXURY watch retailer Cortina Holdings posted an 18.5 per cent decline in net profit for the half-year ended Sep 30, 2023, to S$30.9 million, from S$37.9 million a year earlier.

Revenue for the half-year fell 3.8 per cent to S$391.3 million, from S$406.9 million the year before.

In its results release on Tuesday (Nov 14), the company attributed the decline to economic uncertainties due to rising interest rates, the weakening of some currencies in South-east Asia against the Singapore dollar and operational disruptions due to the expansion and renovation of outlets in Malaysia and Thailand.

Cortina’s operating expenses for the period also rose 4 per cent to S$82.5 million due to higher rental expenses, depreciation costs and right-of-use depreciation.

It added that this is in line with the group’s strategic expansion plan, which will be completed in the next 12 months in Hong Kong, Thailand, Malaysia and Taiwan.

This includes growing the number of boutiques in Hong Kong from one to four and expanding its stores in Singapore and Thailand.

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No dividend was declared for the period, as was the case a year ago.

Earnings per share of the company stood at S$0.187 for the half-year, down from S$0.229 a year earlier.

Cortina shares closed flat at S$3.50 before the results were released.