Growth of retail sales in Malaysia remains strong.
EU YAN SANG, one of Asia’s leading traditional Chinese medicine (TCM) retailers, posted flat top and bottom line y-o-y growth in 1Q09 ended 30 Sep 08.
Revenue dipped 3% to S$50.4 million, dampened by a 21% fall in wholesale TCM revenue to S$6.5 million. This was largely due to a fall in exports to China, said the company.
Sales in retail TCM remained unchanged at S$40 million while revenues from TCM clinics slipped 2% to S$3.4 million.
Sales in Malaysia continued to outperform all the other markets, growing 12% to S$14.7 million.
Two TCM retail outlets were opened in Malaysia during the current quarter, bringing the total number of retail outlets to 146.
Another two TCM clinics were opened in Hong Kong and Singapore, bringing the total number of clinics to 23, including 3 providing specialist medical services.
Gross profit margins were maintained at about 53.5%.
Net profit grew 4% to S$3.3 million.
Net operating cash outflow of S$1.9 million in 1Q08 became a cash inflow of S$4.5 million for 1Q09 due to slow down inventory built-up in anticipation of Chinese New Year sales.
Net gearing is 17%.
Despite the global economic slowdown, the company said it expects FY09 to remain profitable.
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Eu Yan Sang's 1Q09 sales was S$50.4 million.
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