The Hour Glass posts 1.5% rise in Q3 net profit of S$18.6m

LUXURY watch dealer The Hour Glass clocked better earnings in the third quarter on an improvement in turnover, even though its share of associates' results was smaller than before, according to results released on Thursday.

Net profit was up 1.5 per cent year-on-year to S$18.6 million for the three months to Dec 31, 2019 on a 4.7 per cent rise in revenue to S$197.8 million.

Earnings per share stood at 2.64 Singapore cents for the quarter, up from 2.6 cents before, while net asset value rose to 84 cents a share against 79 cents as at March 31, 2019.

Group inventory stood at S$285.5 million as at Dec 31, 2019 against S$286.4 million as at March 31, 2019. For the nine months, the group's net profit rose by 16.2 per cent to S$53.6 million, as revenue grew by 6.4 per cent to S$578.9 million.

While The Hour Glass expects the Covid-19 outbreak to worsen global uncertainties and dampen consumer sentiment, it expects to be profitable for the full year, barring unforeseen circumstances.

No dividend was recommended, the same as in the year before. "However, as in past years, the directors will consider the recommendation of a full-year (final) dividend," the board added.

The Hour Glass shares closed at S$0.78 on Thursday, up S$0.01 or 1.3 per cent, before the results were released.