Eu Yan Sang – 31/10/13

Eu Ya Sang’s 1Q14 Earnings, Up More Than 4 Folds
Eu Yan Sang International, has in its 1Q14 earnings reflected a net profit of $1.4m, which reflects a gain of more than 4 folds, when compared to the earnings of $0.3m in 1Q13. The much better performance is largely attributable to higher revenue contributions and lower foreign exchange losses. The better earnings also translated to a higher earnings per share (EPS) of 0.32 cents for 1Q14, compared to 1Q13’s EPS of 0.08 cents. 1Q14 revenue showed a 12.7 percent rise to $79.5 million when compared to that of 1Q13, which was largely due to growth from its Australia and Hong Kong operations. The company expressed that it expects economic growth in its markets to continue to grow at a modest pace, and expects its core business to remain profitable, while it expects to see significant improvements from its operations in China and Australia.

Significance: It is noteworthy that despite the rising cost of sales as a result of the increased revenue, overall gross margin was not compromised and was still maintained above the 50 percent mark. The cash chest of Eu Yan Sang has also increased from $23.8m in 1Q13 to $86.1m in 1Q14, which gives the company more room for considerations in terms of further potential acquisitions, or expansions.

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