Eu Yan Sang Dishes Out Higher Dividends

Eu_Yan_Sang_logo Eu Yan Sang International Limited (SGX: E02), a healthcare and wellness company with specialising in Traditional Chinese Medicine, posted a revenue increase of 13% to $326.9 million for Financial Year 2013 (FY2013). This was due to solid performance in Hong Kong and Malaysia as well as the full year sales contribution from Australia.

The net profit was up 11% to $18.1 million as compared to FY2012. Part of the reason for the increase was that in FY2012, there was impairment cost of $9.2 million, which included the writing off of the equity investment in Healthzone Limited. The impairment in FY2013 was substantially lower and hence brought about higher net profit for the year.

For FY2013, the earnings per share was at 4.09 cents as compared to 3.70 cents in the previous year.

The company carries a total debt of $161 million against a backdrop of $98.1 million in cash. It is in a net debt position.

The cash flow from operations for FY2013 was $18.9 million, an improvement of 86% mainly due to lower holding on inventories year-on-year. The capital expenditure for the year was $21.2 million and this translates to a negative free cash flow of $2.3 million.

The company will be dishing out a dividend of 2.2 Singapore cents per share, up 10% as compared to the previous year.

As for the future prospects, the company sees many new strategic opportunities for growth in lines of business that complement its existing core. It maintains its key strategic focus in continuous product development, extending wholesale and distribution channels, investment in manufacturing facilities and geographical expansion.

The shares closed at $0.74 on 27th August 2013. The PE ratio is at 18 and the dividend yield is at 3%, using FY2013’s figures.

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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.