The Hour Glass full-year net profit rises 8% to S$82.5m

LUXURY watch retailer The Hour Glass posted net profit of S$82.5 million for the full fiscal year ended March, some 8 per cent higher than S$76.1 million in the previous year.

Revenue for the year fell 1 per cent to S$742.9 million from S$749.5 million, the company announced after market close on Thursday.

Earnings per share rose to 11.71 Singapore cents from 10.79 cents the year before.

The company has proposed a final dividend of four Singapore cents per ordinary share, up from two cents last year. The dividend is subject to the approval of the company's shareholders at the annual general meeting to be held on July 28.

Gross margin for the year came in at 29.2 per cent from 28.8 per cent in FY2020. The group attributed this to its "long-term strategy to attract domestic spending across the region" even as travel and tourism industries took a hit from the Covid-19 pandemic.

The group had also booked lower operating expenses for the year due to reduced advertising and promotion activities, government support schemes for wages and rental rebates. It had, however, incurred a fair value loss of S$10 million on its investment properties.

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In its outlook statement, The Hour Glass said the pandemic has given rise to continuing global uncertainties, and the group's retail operations and financial results will continue to be affected by business disruptions. Consumer sentiment may also be volatile, added the company.

However, The Hour Glass is expecting to be profitable in FY2022 barring any unforeseen circumstances.

Michael Tay, group managing director of The Hour Glass, said: "We are humbled by the collective organisational effort in effectively executing our post-lockdown recovery strategy. We built positive sales momentum for a strong second-half performance in both emerging and mature markets.

"Mindful of the prospective business and operational disruptions that may be caused by Covid-19, we balanced our financial prudence with long-term capital allocation decisions that will bode well for the group's future development."

Shares of The Hour Glass closed at S$0.96 on Thursday, up 0.5 per cent or 0.5 cent.