OSIM’s net profit slumped 42% to $7.8m in Q1

Sales tumbled across key markets.

OSIM International’s net profit was almost halved in the first quarter, on back of steadily soft sale across its core markets.

The group's sales dropped 8% to $138 million in Q1, compared to $150 million in the same period last year.

OSIM acknowledged that it is struggling to maintain margins amid rising costs. It did not declare an interim dividend for the quarter.

OSIM also reduced the number of its outlets to 516, while the number of GNC/RichLife stores was reduced to 194 outlets, mainly from the exit of the Australian nutrition market.

Meanwhile, TWG Tea outlets remains unchanged at 52 outlets with a cautious approach to open new outlets for the year.

“Due to prolonged soft market conditions, we will also adopt a cautious approach to invest for growth and continue to rationalize unprofitable stores. We remain cautiously optimistic on the prospects for the remainder of the year with new products including uMagic, uInfinity Luxe, uDiva Classic and uPamper2 to sustain our position in the market,” OSIM said in its earnings statement.