Eu Yan Sang International, the progressive healthcare company with a strong foundation in Traditional Chinese Medicine (TCM), has posted a net profit of $4.8 million for 2QFY2010 ended 31 December 2009, an increase of 36% y-o-y.

The higher net profit was buoyed by a 10% increase in revenue to $58.5 million for 2QFY2010. Gross profit margin maintained at 52%. Without any impairment expenses in 2QFY2010 compared to 2QFY2009, operating profit soared 41% to $5.6 million.

Eu Yan Sang says retail revenue spearheaded the increase in turnover with an improvement of 14% in 2QFY2010 to $47.7 million. The group’s flagship products, Bo Ying Compound, Bak Foong Pills, Bottled Bird’s Nest, Essence of Chicken and Lingzhi Cracked Spores Capsules continued to show steady growth and remained as the top selling products. However, Wholesale revenue dropped 6% in 2QFY2010 to $6.8 million due to the difference in timing of shipments. Clinics revenue maintained at $3.6 million.

In geographical and local currency terms, Malaysia led the revenue growth with a surge of 34%. The improved sales was due to the timing difference of the Anniversary sales, which were held in second quarter FY2010 as opposed to first quarter in FY2009. Hong Kong posted a 7% increase in revenue, while Singapore returned with a gain of 5%.

The group further expanded its retail network with a net increase of 2 outlets during the quarter to 157. This is in line with the group’s plan to open 10 outlets in FY2010.