Osim International Ltd

Topics: Profit, Earnings before interest, taxes, depreciation and amortization, Generally Accepted Accounting Principles Pages: 6 (1805 words) Published: June 16, 2011
News Release - Embargoed until 28 January 2004, 5.15pm
Results Announcement: Full Year Ended 31 December 2003 (these figures have not been audited) OSIM INTERNATIONAL LTD
A BRAND New Race
Record Turnover & Net Profit For Full Year and Fourth Quarter FY2003 FY2002 % change
Turnover $287.4m $239.2m +20%
EBITDA $36.4m $30.5m +19%
- EBITDA margin 12.7% 12.7%
Pretax Profit $29.1m $22.5m +29%
Net Profit $24.1m $17.1m +40%
- Net margin 8.4% 7.2%
Earnings per share 6.5 cents 4.6 cents
Net asset value per share 26.1 cents 20.6 cents
* based on 371m shares
Key Points
• Since FY 2000, Group Turnover Compounded Annual Growth Rate (“CAGR”) +28%, Group Net Profit CAGR +36%
• Achieved Targeted CAGR Outlined During IPO in 2000
• On Track On A BRAND New Race Towards FY 2008
• Group Turnover +20%, Broad-Based Growth Across All Key Markets • China Turnover +74%, Strong And Extensive 130-Outlet Network In 26 Cities • Global Franchise Turnover +29%, 15 Countries In 5 Continents Developing Rapidly • Group Net Profit +40%, On Higher Profit Margin

• 107 Outlets Added In FY 2003, Target To Open At Least 100 Outlets in FY 2004 • Full Year Dividend Payout +39%
Final Dividend Per Share of 0.8 Cents Proposed
• 1-for-5 Bonus Share Issue Recommended, To Reward Shareholders And Expand Capital Base
Singapore, 28 January 2004 – Singapore Exchange Mainboard-listed OSIM International Ltd, a global leader in healthy lifestyle products, today announced a record set of financial results for the full year ended 31 December 2003.

Group turnover grew 20% and net profit up 40% for the full year. This consistent performance was driven by focusing on its key strengths: strong brand management, effective and direct control over its point-of-sales network, creation of demand for innovative products and sales execution by a well-disciplined and motivated team. Mr Ron Sim, Founder & Chief Executive Officer of OSIM said, “Due to clarity of goals and a growth strategy that focuses on building and extending the OSIM brand, we were able to achieve compounded annual growth rate (“CAGR”) of 28% for turnover and 36% for net profit since financial year 2000, thereby delivering our IPO projection made in 2000. We also added 256 outlets since 2000 to reach 495 outlets. We are on track on a BRAND new race towards 2008.”

“We would like to take the opportunity to thank our shareholders and global institutional investors. With the results in line with our long term target of 20% to 30% growth, the Board has recommended a final dividend per share of 0.8 cents on an enlarged capital. Together with the interim dividend of 0.7 cents per share, the full year payout of 1.5 cents per share amounted to S$4.3million and this represents an increase of 39% over the previous financial year. The dividend payout rate is in line with the previous year. In addition, the Board is also pleased to recommend a 1-for-5 bonus share issue, which will further expand the capital base of the Group.” Mr Sim added.

Outlining the plan for 2004, Mr Sim elaborated, “China and Global Franchise Markets will continue to enjoy strong growth. At the same time, we will continue to incubate new business focuses in Hong Kong and Singapore, while growing our other key markets of Taiwan and Malaysia. A strong pipeline of new innovative products will be introduced in all markets. We aim to grow by at least 100 outlets and add two to three new countries to our Global Franchise Network.”

Turnover By Geographical Operations
FY 2003 FY 2002
Countries S$m % S$m %
% Change
Hong Kong 103.8 36% 95.6 40% + 9%
Taiwan 58.1 20% 46.7 20% +24%
Singapore 42.8 15% 38.4 16% +11%
China 34.6 12% 19.9 8% +74%
Malaysia 34.3 12% 27.9 12% +23%
Global Franchise Markets 13.8 5% 10.7 4% +29%
Total $287.4m 100% $239.2m 100% +20%
All key markets registered good growth in 2003. China and Global Franchise Markets led turnover growth, rising 74% and 29% respectively. With this, the Group achieved greater diversification...
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