Courts Asia posts higher Q2 profit due to lower costs and taxes

COURTS Asia on Wednesday posted a rise in earnings for the second quarter ended Sept 30, 2016, to S$6.7 million, up 11.3 per cent from a year ago, due to lower expenses and finance costs and a fall in taxes.

The furniture retailer said group revenue fell 3 per cent to S$180.5 million in Q2 FY2016/17.

Distribution and marketing expenses fell 6.7 per cent, mainly due to lower advertising costs and the continuous efforts in improving the management of warehouse and distribution, the company said.

Administrative costs were down 4.1 per cent while finance costs tumbled 25.6 per cent.

Tax expenses for Q2 were 27.7 per cent lower at S$2 million. The decrease in tax expense of S$0.8 million was mainly as a result of income tax credits from Indonesia's loss and lower taxable profit from Malaysia, and partially offset by higher taxable profit from Singapore operations, it said.

For the six months ended Sept 30, 2016, the company reported a 33.6 per cent rise in net profit to S$16.1 million, up from S$12.1 million in the same corresponding period a year ago, largely due to better margin and cost management, said Courts.

The counter closed at S$0.44, down S$0.005, on Wednesday.