SINGAPORE (May 25): Cortina, the retailer of luxury watches, reported a doubling of 4Q18 earnings to $7.8 million from $3.8 million a year ago, bringing full-year earnings to $22.3 million, 89% higher than a year ago.
The good performance was largely attributable to higher revenue and better sales margin.
Revenue for 4Q ended March rose 25% to $132.9 million from $106.1 million. The increase in revenue arose from expansion in the group's retail network, notably in Malaysia and Thailand. The revenue for the full year was at $466.3 million, an increased of 19.3% from last year.
Sales margin increased to 23.6% in the final quarter, as compared to 22.8% in the previous quarter. For the full year, sales margin were at 23.2% as compared with 22.9% from last year.
Operating expenses comprised staff cost, rental expense, depreciation and other expenses. The operating expenses increased by 13.6% from last corresponding quarter to $21.3 million in current quarter. For the full year, these expenses increased 9.1% to $78.1 million. The increase was largely due to higher credit card expenses as a result of higher revenue, higher employee benefit expenses and donation made to the charity organisation.
At the end of last year, cash and bank balances were at $35.5 million, compared with $21.8 million.
Looking ahead, Cortina says the global economy remains volatile and may continue to pose challenges to the group's performance in the years ahead. On the other hand, the purchasing power of the regional consumers is rising continually.
“The group will continue to review and fine tune its strategies, adapt to the changes and emerging trends in the industry and in the markets that it operates in...Barring unforeseen circumstances, the group will remain profitable,” says Cortina.
Shares in Cortina closed 0.5 cent higher at 84 cents on Friday.
