EU Yan Sang on Tuesday reported a 38 per cent drop in second-quarter net profit to S$1.98 million, on the back of an 8 per cent drop in revenue to S$84.69 million.
This was mostly due to the impact of the Occupy Central movement and a slowdown in spending by Chinese tourists in Hong Kong. The lower revenue was also due to the shorter period than usual leading up to Chinese New Year in its core markets of Hong Kong, Singapore and Malaysia.
Higher distribution and selling expenses in the form of salaries, depreciation and rental further hurt earnings.
Shares of Eu Yan Sang closed unchanged at S$0.76 on the stock market before the release of its results.