Profit slump for supplement retailer Eu Yan Sang
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Singapore supplement retailer Eu Yan Sang International has had its third-quarter net profit slump to S$286,000 (US$208,515) from $5.45 million as a result of declining revenue, foreign exchange losses and expenses related to closing F&B outlets in China.
Revenue for the four months ending March 31 slipped 6 per cent to $103.87 million, mainly because of lower revenue from the Malaysian market as well as its weakening currency.
Foreign exchange losses of $1.9 million resulted from the weakening Hong Kong dollar during the third quarter as well as the outlet closures.
“Despite the sluggish regional economy, we are heartened by the green shoots of recovery budding in some of our markets,” says group CEO Richard Eu. ”We remain committed to improving our performance through cost-reduction initiatives and rationalisation, while seeking greater levels of efficiency through technology.
“On the other hand, weak macroeconomic conditions continue to weigh down our market performance in Hong Kong and Malaysia.”
Questions & Answers
Q.What caused the significant drop in Eu Yan Sang's third-quarter net profit?
What caused the significant drop in Eu Yan Sang's third-quarter net profit?
The retailer's net profit slump was primarily due to declining revenue, foreign exchange losses, and expenses incurred from closing food and beverage outlets in China during the period.
Q.Which markets contributed most to the decline in Eu Yan Sang's revenue?
Which markets contributed most to the decline in Eu Yan Sang's revenue?
Revenue slipped mainly because of lower sales performance in the Malaysian market. Weak macroeconomic conditions also continued to negatively impact market performance in Hong Kong and Malaysia.
Q.What strategies is Eu Yan Sang implementing to improve its financial performance?
What strategies is Eu Yan Sang implementing to improve its financial performance?
The company is committed to improving performance through cost-reduction initiatives, rationalisation, and seeking greater levels of efficiency by adopting new technology.
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