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Osim Q1 net profit down 53% to S$13.5m on massage products weakness
LIFESTYLE products group Osim International recorded its first double-digit revenue slide in some time, with first-quarter revenue for the three months ended March 31, 2015 down 13 per cent to S$149.8 million, from S$172.6 million a year ago.
Net profit fell 53 per cent to S$13.5 million from S$28.8 million a year ago.
Earnings per share was 1.8 cents, down from four cents a year ago.
A one cent per share interim dividend was declared, unchanged from a year ago.
Chief financial officer Peter Lee told an analyst briefing on Tuesday evening that the results were due to a broad-based slowdown in the company's core massage products segment. The GNC health supplements business is stable while TWG Tea is growing, he said.
"The massage business, from quarter to quarter, there could be volatility. With the launch of new major products, we expect the momentum to move correspondingly," he said, referring to the April launch of its uMagic massage chair which was not reflected in the first-quarter results.
Osim closed trading at S$1.93, down four cents or 2 per cent, before the results were announced.