OSIM Delivered for Third Quarter

osimlogo OSIM (SGX: O23), one of Asia’s top brands in well being and healthy lifestyle products, posted impressive results for the third quarter of 2013 (3Q 2013). The revenue improved 7% from S$142.3 million in 3Q 2012 to S$153.0 million in 3Q 2013 while the net profit surged 16.1% from S$19.6 million in 3Q 2012 to S$22.7 million in 3Q 2013. With that, the company has proudly achieved growth in profitability for 19 straight quarters.

The increase in revenue was due to higher consumer demand for OSIM’s products such as uInfinity, uDivine App, uAngel and nutritional supplements like Taut, Stem C, and Liver Protector. The increase in net profit was mainly due to an increase in sales and better productivity. Even though the operating expenses increased mainly due to increases in wages and rental, better productivity in sales per outlet resulted in higher profits.

On the balance sheet, as of 30th September 2013, OSIM has S$148.0 million of total debt, which includes bank borrowings and convertible debt securities. It has cash and cash equivalents of S$250.4 million. Therefore, it is in net cash position of S$102.4 million.

OSIM generated S$15.9 million in cash flow from operations in 3Q 2013 versus that of S$15.6 million in the previous year.

The company has declared interim dividend of 1.0 Singapore cent per ordinary share. For the nine months thus far, OSIM has paid 4.0 Singapore cents per ordinary share.

With such profitability, it is not a surprise that OSIM has zoomed past the Straits Times Index (SGX: ^STI) by a margin of 2,010% over the past five years. OSIM has also surged 907.3% over one of the darlings of the stock market, Super Group (SGX: S10), during the same period.

The shares of OSIM closed at S$2.11 on Thursday and it is trading at a historical PE ratio of 17.5. The dividend yield is at 1.9%.

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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.