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OSIM Q3 profit plunges 62% to S$6m

LIFESTYLE products group OSIM International reported net profit of S$6 million for the three months ended Sept 30, 2015, down 62 per cent from S$16 million a year ago.

Revenue was down 11 per cent to S$142 million, from S$158 million a year ago.

Fixed cost components such as shop rentals, advertising and promotion spending, employee benefits and warehouse expenses increased even as sales fell, contributing to the sharp net profit drop, said OSIM chief financial officer Peter Lee at an analyst briefing on Tuesday evening.

"Our mind is not set on cost reduction, but it's about being effective in running the stores. If you think there's no structural disruption, we'll maintain and hold a steady course. (If things) come back very quickly, if you don't have the stores and the staff, that would be a problem," he said.

Interim dividend of one Singapore cent a share was maintained.

OSIM closed down 1.5 Singapore cents to S$1.615, down 0.9 per cent.

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