osim FA pdf

OPERATIONSREVIEW
The Group's turnover increased by 31% in FY2000 to
S$135.6 million from S$103.1 million in the previous year.
The increase in turnover was mainly due to the introduction
of new products and higher contribution from the
subsidiaries, particularly in Taiwan, Hong Kong and Malaysia.
Profit before taxation rose by 27% from S$10.8 million in
FY1999 to S$13.8 million in FY2000 while profit after taxation
and minority interests increased by 27% from S$7.4 million
to S$9.4 million. The percentage increase in profit was lower
than that of turnover due to higher expenses incurred during
the year to launch and enhance the Group's brand
architecture platform. This relates to the design and launch
of our new corporate logo and identity. Expenses were
incurred to commission a global brand consultant and to
execute the accompanying advertising campaign.
Factors which contributed to the improvement in the Group's
performance include:
(a) new and enhanced products,
(b) lower cost of goods due to favourable exchange rates
arising from a weaker Yen as we made a portion of
purchases from Japan, and
(c) higher income from our associated companies due to
an increase in exports to a major distributor in US.
This healthy turnover and profit comes in the wake of the
society's trend towards a more sophisticated and healthy
lifestyle, and is an indication of OSIM's future success in
attaining the status of a leading global brand.
Annual Report 2000
21