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Cortina posts 4% higher 4Q earnings of $8.1 mil due to improved margins

Michelle Zhu

SINGAPORE (May 24): Cortina Holdings has announced $8.1 million in earnings for the 4Q ended March, growing 4% y-o-y from $7.8 million on the back of improved sales margins.

The latest set of quarterly results group’s earnings for FY19 to $29.2 million, which is 31% higher than its full year earnings of $22.3 million previously due to improved margins and lower full-year operating expenses.

Cortina’s bottomline growth for 4Q comes despite an 8.5% y-o-y revenue decline to $121.6 million, in the absence of revenue contributions from certain retail outlets which recently closed in Singapore, Malaysia and Thailand.

This contributed to a marginal 1.1% decrease in FY19 revenue to $460.8 million compared to the previous year.

Sales margin for the latest quarter nonetheless grew to 26.4% compared to 23.4% a year ago. For FY19, the sales margin stood at 25.3% as compared to 23.2% in FY18.

Meanwhile, quarterly operating expenses grew 0.7% from the last corresponding quarter to $21.2 million, although these expenses fell 2% to $77 million on a full-year basis due to lower rental expenses as a result of retail outlet closures.

As at end-March, cash and bank balances stood at $81.3 million compared to $35.5 million a year ago.

The group says the improved cash flows stem from more cash generated from operating activities, offset largely by its repayment of $20.5 million in bank borrowings.

While it believes an uncertain global economy may pose challenges to its future performance, Cortina believes the purchasing power of regional consumers is on an uptrend.  

With this in mind, the group says it will continue to review and fine-tune its strategies while adapting to the changes and emerging trends in the industry, as well as in the markets that it operates in.

Shares in Cortina closed 5 cents higher at $1.19 on Friday.