Cortina’s H1 profit rises 10% to S$30.5 million amid stronger regional sales

[SINGAPORE] Luxury watch retailer Cortina posted a 10 per cent rise in net profit to S$30.5 million for the six months ended Sep 30, up from S$27.8 million a year ago.

The increase came amid higher revenue, the mainboard-listed company said in a regulatory filing on Friday (Nov 7).

Revenue for the half year rose 13 per cent to S$468.7 million, from around S$413 million a year earlier.

This was partly driven by a 13 per cent increase in revenue from the retailer’s South-east Asia market (excluding Singapore) to S$201.6 million, from S$178.2 million. In comparison, revenue from Singapore rose by 12 per cent to S$191.1 million, from S$170.9 million.

Nevertheless, Cortina said its operating expenses – mainly staff costs, rental expenses, depreciation and other overheads – have risen.

For the current half year, operating expenses climbed 13.3 per cent from a year ago to S$102.2 million, driven primarily by higher staff costs, increased rental expenses, depreciation of right-of-use assets and foreign exchange losses.

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Meanwhile, earnings per share stood at S$0.184 for the period, up from S$0.168.

No dividend was declared for the half year, unchanged from the corresponding period a year ago.

Cortina said it has maintained a healthy balance sheet, with total equity of S$466.5 million, compared with S$455.4 million at the end of the last financial year.

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Notwithstanding the challenges arising from uncertainties in the global economic outlook, a strong Swiss franc and high gold prices, Cortina said it is “cautiously optimistic that it will remain profitable in the coming year”.

Shares of Cortina closed flat at S$3.41, before the announcement.