Mainboard-listed Eu Yan Sang International, the healthcare company with a strong foundation in Traditional Chinese Medicine (TCM) and integrative healthcare, posted an increase of 48% in net profit to $19.3 million for its financial year ended 30 June 2010 (FY2010) on the back of record revenue of $244.7 million.

The group’s higher revenue in FY2010 was mainly attributed to the increase in retail sales in all its three core markets, namely Hong Kong, Malaysia and Singapore. Lower operating costs and better same store sales contributed to a better operating profit before tax. The higher net profit was also further boosted by $1.5 million from a fair value gain on property, plant and equipment and a fair value gain on investment properties.

Retail-TCM recorded a surge of 13% in revenue to $197.6 million for FY2010. Wholesale-TCM revenue dipped 5% in revenue due to lower exports to China owing to a license renewal issue. Sales of the group’s top five selling products, namely Bottled Bird’s Nest, Bo Ying Compound, Bak Foong Pills, Lingzhi Cracked Spores Capsules and Essence of Chicken, continued to show steady growth.

Clinic-TCM revenue maintained at $14.3 million.

In geographical and local currency terms, Malaysia continued its surge in revenue, recording a 19% increase. Hong Kong remained the group’s largest market, posting 11% growth. Singapore recorded 8% growth in revenue. The impressive performance by Malaysia was contributed partly by the excellent hamper sales and the improving performance from the group’s new sub-brands such as Yen and HoneyMart.

Buoyed by a strong cash generated from operations of $31.3 million, the group ended FY2010 financially stronger with cash-on-hand of $35.6 million compared to $25.4 million the year before.