OSIM first-quarter net profit rises to record $25 million

That makes 17 consecutive profit quarters.

In a release, OSIM International (OSIM) announced that for the period quarter ended 31 March 2013 (1QFY13), it grew revenue to $151 million from $150 million. The increase in sales was driven by the launch of new products.

Profit before tax reached a high of $32 million, up 10% from the same period last year (1QFY12)which the company attributed mainly to increases in sales and better productivity. Profit after tax for the quarter was at a record $25 million, up 13% from 1QFY12.

"For the 3 months ended 31 March 2013, we had sales growth with a better product mix of massage chairs, massage sofas, foot massagers, head massagers, neck and shoulder massagers and nutritional supplements. uDivine App, uDivine, uAngel, uPhoria, uHug, Taut, Zhi, Stem C, Liver Protector and other key products continue to sell well," OSIM said.

In terms of cash flow, EBITDA grew to a record $34 million due to better product mix and higher productivity per man per outlet. Three months net cash flow from operating activities was $26 million, up 49% from the previous year.

"During the quarter, we bought $3.8 million of treasury shares and there were short-term fixed income investments of $4.2 million. We invested $1.5 million to open new outlets and upgrade existing outlets," OSIM said.

At 31 March 2013, the cash and cash equivalents of the Group stood at $220 million. Including fixed income investments of $33 million, total cash & cash equivalents and fixed income investments is $253 million.

OSIM said it focused on building a strong balance sheet for the quarter, which is reflected in its net cash position of $79 million. Including fixed income investments of $33 million, the total net cash and fixed income investments is $112 million. Net assets as at 31 March 2013 were $224 million.

"As a result of the record performance, the Board is pleased to propose an interim dividend of 1 cent per share," the company announced.