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Courts Asia's Q3 profit flat at S$4m
COURTS Asia's third quarter revenue has grown 6.1 per cent to S$204.7 million, up from S$192.9 million in the previous corresponding period, while net profits have held steady at S$4 million.
The rise in revenue was driven by a 7.9 per cent increase in Singapore sales, which makes up the majority of the group's sales.
Higher bulk sales for digital products drove up Singapore and Malaysia's sales, while Indonesia sales were mainly bolstered by new store openings.
"Given a subdued retail environment across all three of our key markets, the group has performed within expectations, with topline growth in all markets and profit holding steady at S$4.0 million. Our ongoing cost savings measures have put us in a resilient position. Going forward, we will continue to focus on cost-saving initiatives to navigate the current muted retail environment," said Courts Asia executive director and group CEO Terence O'Connor.
Meanwhile, the group's gross profit margin slipped 2.4 percentage points from 32.1 per cent in Q3 FY14/15 to 29.7 per cent in Q3 FY15/16, which was the result of a shift in sales mix to electrical products and higher bulk sales which carry lower margins.