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CONTINUING its return to profitability in the first quarter, OSIM International yesterday announced a second-quarter net profit of $5 million - a reversal from the net loss of $6 million for the year-ago period.
Compared with the first-quarter net profit of $3.2 million, the second-quarter earnings were 56 per cent higher.
Revenue was $117 million, up just one per cent from Q2 2008's $116 million but 22 per cent from Q1 2009's $96 million.
Sales of OSIM products were driven by the launch of the uDream massage chair and the uSqueez Warm in Singapore and Hong Kong.
Having shut down over a dozen OSIM stores in the Asian region as part of a rationalisation process, the group now has plans to shift into high gear by opening 50-80 new OSIM outlets in China per annum for the next 3-5 years, with each outlet taking up an area of 200-300 square feet.
Locally, OSIM outlets will be opening up at the Ion Orchard shopping mall and the Marina Bay Sands integrated resort.
Its Richlife outlets in China, of which there are currently 18, are expected to increase to 40 by the end of this year. OSIM also has plans to add 60-100 Richlife outlets per annum over the next five years.
Earnings per share stood at 0.83 cents for the quarter and 1.35 cents for H1 FY2009, compared with losses per share of 1.11 cents and 3.55 cents for the corresponding periods a year ago.
OSIM expects profits for the second half of the financial year to be higher than the previous year's.
'There is much growth in the health and well-being business. We have seen people trading in their massage chairs every five years,' said Ron Sim, its founder and chief executive.
OSIM shares closed three cents higher at 51 cents yesterday.
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