Cortina's H1 net profit surges 74% on easing Covid-19 curbs, Sincere Watch acquisition

MAINBOARD-LISTED Cortina Holdings C41 : C41 0% ' earnings surged 74 per cent to S$25.4 million in the first half of its financial year ended Sep 30, 2021, from S$14.6 million a year ago.

Earnings per share stood at S$0.154 for the half year, up from S$0.088 a year earlier.

Revenue rose in tandem by 87 per cent to S$324.6 million for the same period, from S$173.8 million the year before.

The company attributed the increase in revenue to easing Covid-19 restrictions in Singapore and Thailand, as well as additional revenue from Sincere Watch, which the company acquired for S$84.7 million in March 2021.

Sales margins also contributed to higher profits, improving to 30 per cent in the latest half year, compared to 28 per cent from the year before.

However, the company also noted that its operating expenses rose 81.6 per cent to S$63.9 million, largely due to the additional expense of the newly acquired Sincere Watch, higher sales-related expenses such as salesman commission and credit card commission, as well as higher marketing expenses for brand development.

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As uncertainties remain due to the continuing pandemic, the group has also drawn down S$50 million in bank borrowings to strengthen its working capital.

Cortina expects the group to remain profitable, barring any unforeseen circumstances.

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

Cortina shares closed flat on Thursday at S$3.80 before its financial results were released.