OSIM’s 3Q earnings down 27.8% as chairs remain unsold

And TWG Tea incurs expansion costs.

Weaker economic climate and property markets in core markets are pointing to soft chair sales in 3Q.

According to a report by Maybank Kim Eng, 3Q14 topline was up 3% YoY but down 13% QoQ due to soft chair sales in core markets. Net profit (-28% YoY, -45% QoQ) was affected by costs for TWG Tea’s expansion in Taiwan and China and from two lawsuits in Singapore and HK.

OSK-DMG, meanwhile, reports that earnings fell 27.8% YoY to SGD16.4m, partly dragged down by legal costs. Its 9M14 net profit now makes up 63% of consensus FY14 net profit and it is not likely to achieve earlier forecasts.
Maybank KE adds that TWG will expand further in 1H15 in Guangzhou, Beijing and HK. Start-up costs will stem from the building of warehouses & central kitchens and hire & training of serving staff.

However, as TWG is expected to add more faster-breakeven retail-only stores, we expect scale economies to kick in, likely in 2H15. To further mitigate the expansion costs, OSIM intends to build its international franchisee business which does not involve heavy start-up expenses.

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia