OSIM International profit up 16% to reach record $26m

18th straight quarter of profit growth.

For the second quarter of 2013, OSIM International Ltd posted a revenue of $165 million, up 7% from the same quarter last year. The increase in sales was driven by higher consumer demand for OSIM products like uDivine App, uAngel, uPhoria, uHug, uPixie, uCozy, uRelax, uPebble, uBio, uSlender and nutritional supplements like Taut, Stem C, Zhi and Liver Protector.

Profit before tax reached a high of $34 million, an increase of 17%. The better performance is due mainly to an increase in sales and better productivity, the company said. Meanwhile, the increase in operating expenses was mainly due to increases in wages and rental but our better productivity in sales per outlet resulted in better profits.

"We are pleased that this positive growth is broad-based across our five key countries of China, Hong Kong, Taiwan, Singapore and Malaysia. Our nutritional supplements subsidiary ONI Global also grew profits. Our share of profits from associated companies was better with contributions from our joint venture factory DT-OSIM and TWG Tea," the company said.

Profit after tax for the quarter was at a record $26 million +16%.

The company said it was pleased with the record performance for Q2 2013 despite a tough macro environment and it expects growth will continue to be driven by market leadership, continuous innovation and productive execution. It also expect to continue to create higher consumer demand for OSIM products like uDivine App, uAngel, uPhoria, uHug, uPixie, uCozy, uRelax, uPebble, uBio, uSlender and nutritional supplements like Taut, Stem C, Zhi and Liver Protector.

For this year, OSIM International is targeting to open 20 to 30 OSIM outlets. For RichLife, it will focus on seven key cities for better focus, control and efficiency.

"We have grown our sales and with new products being introduced in the second half of this year, we expect our businesses to remain strong in 2013," the company said.

The directors recommended an interim dividend of 2 cents per share given the results.