July 19, 2019

Advertise with us
HOME REGIONS Asia-Pacific › Courts boosts profits in first quarter

Courts boosts profits in first quarter

by Stuart Wilson, Thursday 3 September 2015

South-East Asian IT and consumer electronics (CE) retailer Courts boosted after-tax profits 19% year-on-year to hit S$6.04m (US$4.27m) for its first quarter ending 30th June 2015. The results marked an improvement in margins as sales were up just 2.1% year-on-year at S$198.2m (US$134m). Courts plans to open its fourth store in Indonesia by the end of 2015.

Courts’ sales boost was driven by sales from new stores in Indonesia and higher sales in Malaysia, offset by a decrease in sales in Singapore. Sales in Singapore, Malaysia and Indonesia accounted for 63.4%, 34.8% and 1.7% of total revenues respectively.

Terry O’Connor, CEO at Courts, said: “Our margin improvement and cost management strategies to improve sales and operational efficiencies have continued to yield results. Our Malaysia business has seen improving profitability with the success of our credit campaign whilst the Singapore business is still being impacted by the soft retail environment.”

“It is essential for us to continue to seek ways to innovate our product offerings and enhance overall yield as well as the productivity of our stores. We recently announced that two international brands, Ace Hardware and JYSK, will be launched exclusively in shop-in-shop concepts in Courts Singapore by the end of 2015, and will continue to explore margin enhancing initiatives to boost our performance,” he added.

Currently, Courts operates more than 80 stores across three markets, spanning over 1.6 million square foot of retail space. Courts’ first Megastore in Malaysia was officially opened in Sri Damansara in July 2013, and the second in Subang Jaya in January 2014. Courts recently opened its first Megastore in Indonesia in Kota Harapan Indah, Bekasi in October 2014, and will open its second Megastore in BSD City, Tangerang by December 2015.

O’Connor added: “In Indonesia, three stores are now operational and we expect our fourth store, the 280,000 square foot. Megastore in BSD City, to open by December 2015. About 130,000 square foot is dedicated to retail and subletting, and the site is also intended to house our regional distribution centre and support office. We are well on track to achieve economies of scale and operational efficiencies from the fourth quarter of fiscal 2015-2016.”

“We maintain a cautious outlook of the region’s retail prospects in the medium to longer term, notwithstanding shorter-term challenges. Our efforts will remain on optimising costs and driving productivity to enhance customer and shareholder value,” he concluded.

DISTREE APAC 2015

Channel APAC is an official Media Partner for regional technology and consumer electronics retail channel event DISTREE APAC taking place October 7-9th in Singapore. Vendors and channel partners requiring more information about DISTREE APAC 2015 should contact events@channelemea.com quoting code DAP15.

Print this page  Recommend this article  Reply to this article    Del.icio.us   Digg   Technorati

July, 2019
MonTueWedThuFriSatSun
1234567
891011121314
15161718192021
22232425262728
293031    


Advertise with us

Login


Register here

Press Releases

Upload your PR here

Advertise with us