The Hour Glass posts 35% jump in net profit in H1 to S$84.6m despite higher operating costs

LUXURY watch retailer The Hour Glass on Wednesday (Nov 2) reported a 35 per cent jump in net profit for the six months ended Sep 30 to S$84.6 million, compared with the same period last year.

Revenue rose 18 per cent in the half year to S$555.5 million, compared with the year-ago period, the mainboard-listed company's interim financial statement showed.

Costs and expenses also increased by 15 per cent to S$466.7 million in H1. The company noted that the higher operating expenses were due to increased staff costs, rental expenses and advertising and promotion activities.

Earnings per share in H1 was 12.58 cents, a 41 per cent jump from the corresponding period last year.

The company has approved an interim dividend of 2 cents per ordinary share for H1.

Although The Hour Glass expects to continue to be profitable in H2 and for the full financial year, it said geopolitical factors may affect buyer sentiment.

"The continuing war in Ukraine and increasingly negative economic and political uncertainties may adversely impact consumer sentiment, particularly with luxury consumers and watch buyers," the company said.

The Hour Glass shares rose S$0.01, or 0.51 per cent, to close at S$1.97 on Wednesday, ahead of its announcement.

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