A 75 per cent plunge in net profit has been reported by Singapore health and wellness company Eu Yan Sang International for its second quarter.
However, higher sales in Singapore and Australia helped it post marginal improvements in revenue. This edged up 1 per cent over the three months ended December 31 to reach S$85.61 million ($61.14 million) compared to the same period a year earlier.
Lower foreign exchange gain couples with higher distribution and selling expenses dragged its net profit down to S$498,000 from S$1.98 million, the company says.
For the half-year, revenue dipped by 4 per cent year-on-year because of lower revenue from its wholesale segment in Hong Kong and the overall weakening of the Malaysian ringgit.
Net profit for the period fell 87 per cent to S$348,000.
“We are glad that Hong Kong’s rate of decline is showing signs of moderation and that there is an improvement in Malaysia,” says chief executive Richard Eu.
Lower spending by mainland tourists a continuing challenging retail environment were blamed for the lower Hong Kong sales.
“We are looking to expand the retail network within Australia and Malaysia, as well as the wholesale network in Singapore, to continue on this revenue rejuvenation journey for the group,” says Eu, who notes an “encouraging” outlook in China through strategic joint ventures.