OSIM third quarter profit up 86% to S$13mln

Despite 5% fall in sales to $117mln, the company’s cash flow and profitability grew.

OSIM said its profit after tax was $13.0 million a surge of 86 percent its third quarter sales.

The company also posted EBITDA at $19.3 million, an increase of 42 percent. Its profit before tax was up 52 percent $17.0 million and tts cash & cash equivalents at $54 million.

“We are pleased to announce a strong set of results for the quarter. During the quarter we grew cash flow and profitability. The conversion of GNC Australia into franchised outlets resulted in lower sales recognition. However, this conversion has given rise to better profitability for our Australian subsidiary, according to an OSIM report.

Overall group gross margins and profits were up due to a better product mix. As at 30 September 2010, cash & cash equivalents totaled $54 million.

For 9 months FY 2010, our profit after tax was $33.1 million. In the coming months more new products will be introduced and we expect this will contribute positively to sales, cash flow and profitability.”