Courts Asia's net profit inched 5.1% higher to S$41.4m

Two stores slated to open in Singapore this year.

According to a release, Courts Asia's EBITDA rose 11.1% to S$75.0 million for FYMar2013, compared to S$67.5 million in the last corresponding year. Net profit rose 5.1% to S$41.4 million for FYMar2013 compared to S$39.4 million in FYMar2012. 

The profit was achieved on the back of year-on-year sales growth of 9.6%, which increased to S$793.8 million in FYMar2013 from S$724.2 million in FYMar2012. In tandem with higher Group revenue, gross profit in FYMar2013 increased by 7.9% to S$250.3 million. Gross profit margin remained at a healthy level of 31.5%.

For the three months ended 31 March 2013, sales increased 3.0% to S$188.5 million from S$183.0 million in the past corresponding period. Gross profit held steady at S$60.6 million, with gross profit margin of about 32.2%.

EBITDA decreased 1.36% to S$21.8 million in FYMar2013 4Q from S$22.1 million in FYMar2012 4Q, due to lower other income and other gains and higher distribution, marketing and finance expenses.

In FYMar2012 4Q, the Group’s sales were boosted by a S$7.5 million service charge income positive transfer1that impacted the top and bottom lines.

However, this year’s corresponding quarter saw a lower positive transfer of S$200,000, resulting in relatively weaker profits. Courts Asia’s Executive Director and Group Chief Executive Officer, Mr Terence Donald O’Connor, said: “We have seen a positive topline momentum driven by initiatives that we’ve taken, from broad promotional activities to enhanced product mix and ranges.

With a pipeline of new store openings, we are on track with our growth plans. We recently announced the site of our first “big-box” megastore in Malaysia.

Occupying 108,000 square feet, the two-storey Sri Damansara Megastore which is scheduled to open in August 2013 will mean we are likely to exceed on our targeted expansion plan of increasing our retailing area by an average of 120,000 sq. ft. a year in Malaysia.

In Singapore, we will also increase our store footprint, adding two new stores in the west of the island by the end of the year, exceeding the target of one new store a year. Service charge income positive transfer refers to the release of previous year’s unearned service ch