Watch retailer Cortina Holdings C41 has reported earnings of $76.5 million for its FY2023, up 11% over the preceding year ended March 2022. Revenue in the same period was up 15% y-o-y to $826.6 million.
However, for the recent 2HFY2023, earnings dropped by 15% y-o-y to $36.3 million, even though revenue was up 7% y-o-y to $419.7 million.
Cortina attributes the 2HFY2023 y-o-y earnings drop to a one-off written back of stock provision due to the exchange of inventory in the prior year which was not present in the current second half-year.
The company attributes the higher revenue to a better sales mix that includes new brands such as Jacob & Co, Laurent Ferrier, Parmigiani, etc.
For both FY2022 and FY2023, Cortina was able to maintain its margins at 32.9%.
Cortina plans to pay a final dividend of 2 cents, plus a special dividend of 14 cents, for a total FY2023 payout of 16 cents.
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For the preceding FY2022, the company paid a total dividend of 15 cents.
"The uncertain global economic outlook is likely to negatively affect consumer sentiment. Business conditions have also become more challenging," says Cortina in its earnings commentary.
"Notwithstanding the headwinds, the group expects to remain profitable in the coming year, barring unforeseen circumstances," the company adds.
