Osim Records Record Profits

Asia’s No. 1 brand in well-being and healthy lifestyle products, Osim International Limited (SGX: O23) released a healthy set for the 2nd Quarter of Financial Year 2013 (2Q 2013) that ended on 30th June 2013.

Osim clocked a revenue of $165 million and this was a 7% improvement over 2Q 2013. The increase in sales was driven by higher consumer demand for OSIM products like uDivine App, uAngel, uPhoria and nutritional supplements like Taut, Stem C, Zhi and Liver Protector.

The company currently operates in 34 countries worldwide. The five key countries of China, Hong Kong, Taiwan, Singapore and Malaysia all contributed to better sales growth for the quarter.

For 2Q 2013, Osim saw sales growth with a better product mix of massage chairs, massage sofas, foot massagers, among others. The company achieved 18 consecutive quarters of record profit. Osim’s net profits after tax for 2Q 2013 came to $26 million, which was an improvement of 16%. Despite increase in operating expenses mainly due to increases in wages and rental, better productivity in sales per outlet resulted in increased profits.

The diluted EPS for 2Q 2013 was 3.48 cents while that in the previous year was 3.09 cents. The diluted EPS for 1H 2013 was at 6.83 cents. By annualising this, the PE ratio turns out to be 15.1, as of market close on 30th June 2013.

In 2Q 2013, the cash flow from operations was at $30.5 million (up 16% over 2Q 2012) and the capital expenditure was at $2.5 million due to opening of new outlets and upgrading of existing ones. In the previous year, the cash flow from operations was at $26.2 million and the capital expenditure was at $2.6 million.

Osim has proposed an interim dividend of 2 cents per share and it expects its businesses to remain strong in 2013 as new products are being introduced in the second half of this year.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.  Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.