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Cortina posts 19% higher 2H20 earnings of $20.4 mil on higher revenue and improved sales margins

Felicia Tan
Felicia Tan • 2 min read
Cortina posts 19% higher 2H20 earnings of $20.4 mil on higher revenue and improved sales margins
This brings Cortina’s earnings for FY20 to $39.3 million, up 36% from FY19’s earnings of $29.0 million.
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SINGAPORE (July 1): Cortina Holdings has reported earnings of $20.4 million for 2H20 ended March, up 19% from the $17.1 million registered in 2H19.

The improved bottomline was mainly due to higher revenue and better sales margins.

This brings Cortina’s earnings for FY20 to $39.3 million, up 36% from FY19’s earnings of $29.0 million.

Earnings per share for the full year came in at 23.7 cents, up from last year’s 17.5 cents on a fully diluted basis.

Cortina’s sales margin grew 27.6% for 2H20, a 1.6% increase from the same six months last year. For the full year, the company’s sales margin grew 1.9% y-o-y.

Revenue for 2H20 and FY20 increased 5% y-o-y to $256.8 million, and 11% y-o-y to $513.8 million, respectively.

Operating expenses for 2H20, which increased by 6.0% y-o-y to $42.8 million, included staff costs, rental expenses, depreciation, and other expenses.

For FY20, these expenses increased 10.9% y-o-y to $85.7 million. The increase was mostly attributable to higher staff costs, and higher rental expenses in the current FY.

The adoption of SFRS (I) 16 resulted in a 77.4% y-o-y increase in finance costs for 2H20 to $965,000, and 85.7% y-o-y higher to $2.2 million for the financial year, due to the interest element of lease liabilities.

As at end March, cash and cash equivalents for FY20 stood at $114.4 million.

Cortina says its cash flows have improved due to more cash generated from operating activities.

It adds that the Covid-19 outbreak has impacted its businesses, and it cannot be quantified “at this point of time” as the situation continues to evolve.

“Global supply chains, the luxury chains included, have experienced and will continue to face difficulty in planning, production, delivery and simply any sort of business activity in their endeavour to maintain viable business,” it says.

Shares in Cortina closed flat at $1.18 on Wednesday prior to the announcement.

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