Cortina Holdings has posted earnings of $25.0 million for the 2HFY2021 ended March, 23% higher than earnings of $20.4 million in the corresponding period the year before. This was attributable to better sales margins and cost support from parties.
The group’s earnings for the FY2021 stood at $39.6 million, 1% higher than earnings of $39.3 million in the FY2020.
Earnings per share (EPS) for the FY2021 stood at 23.9 cents compared to FY2020’s 23.7 cents on a fully diluted basis.
Revenue for the 2HFY2021 edged up 2.4% y-o-y to $262.9 million, while FY2021 revenue declined 15% y-o-y to $436.7 million due to supply chain disruptions and certain months of non-operations in the 1HFY2021.
Sales margin increased by two percentage points y-o-y to 29.6% in the 2HFY2021.
For the FY2021, the group’s sales margin grew 1.9 percentage points to 29.1%.
During the year, the group registered other gains of $8.7 million, mostly from government grants and rent concessions.
Operating expenses, which comprised staff costs, rental expenses, depreciation and other expenses, increased 6.1% y-o-y to $45.6 million in the 2HFY2021.
Operating expenses fell 6% y-o-y in the FY2021 due to lower staff costs and rental expenses.
Inventories in the FY2021 were $71.8 million higher at $215.1 million due to the acquisition of Sincere Watch.
For the FY2021, the group has recommended a final dividend of 2.0 cents per ordinary share, and a special dividend of 4.5 cents per ordinary share, bringing the total dividend for the year to 6.5 cents per share, same as the amount distributed in FY2020.
As at end-March, cash and cash equivalents stood at $130.0 million.
Looking ahead, Cortina says it expects to benefit from the acquisition of Sincere Watch in terms of economies of scale. It adds that it expects to remain profitable barring unforeseen circumstances.
Shares in Cortina closed 11 cents higher or 3.7% up at $3.10 on June 28.
Photo: Cortina
