The secret behind Courts Singapore's whopping $43m earnings contribution

It's 69% of group profits.

According to CIMB, Courts Singapore contributed S$43m to earnings before interest, tax and other income vs. just S$19m from Malaysia. 

This represented 69% of group profits. They estimated previously that Singapore could contribute 55-65%. 

Here's more from CIMB:

The difference lies in their cost structures. Singapore’s SGA expenses as a percentage of sales averaged 15% in the past three years, much lower than Malaysia’s 47%.

Malaysia may need more credit officers but we think the key is logistics costs. Singapore’s more efficient logistics network has translated into lower selling and distribution expenses.

We think there is also an element of not enough scale yet in Malaysia, despite 60+ stores. Expenses should come down as store network improves. To optimise its logistics network, management has tasked Bain to study the situation.