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