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Tag: osim

  • KKR invests into lifestyle products

    KKR invests into lifestyle products

    Private Equity firm KKR has taken up a “significant stake” in massage chair and lifestyle products group V3, the owner of the OSIM and TWG Tea brands. KKR’s investment is up to S$500 million in V3, valuing V3 at an enterprise value of about S$1.7 billion. However,  Both parties declined to comment on the exact mix of equity and debt financing. KKR is making the investment from its Asian Fund III. What we know is that the investment by KKR represents more than 50 percent increase in enterprise value compared to when the group was taken private.

    Mr Magnus said: “The luxury lifestyle and wellness industry continues to be a sector of exciting growth in Asia, proliferated by rapidly rising consumer affluence throughout the region.”

    Ron Sim remains the Chairman, Chief Executive and Controlling Shareholder of V3. He said: “I am extremely pleased to welcome KKR as a significant shareholder in V3. I am confident this investment will position the company for our next phase of growth, starting with the immediate expansion of TWG Tea in Japan and the US and of OSIM in China. We would also be looking into M&A opportunities that are earnings accretive.”

    KKR partner Jaka Prasetya said the investment underscores KKR’s strong belief in the continued growth of the region’s consumer sector: “We aim to provide support and capital to successful home-grown, regional companies like V3 in order to capture opportunities across Asia and beyond.”

    Headquartered in Singapore, V3 has a presence in over 100 cities in 26 countries around the world. The largest chunk of V3’s revenue comes from sales of OSIM massage chairs.

    V3’s annual revenue climbed back above the S$600 million mark last year, reversing the revenue decline owing to store closures in China in prior years. Profit also rose, Mr Sim said.

    The luxury lifestyle and wellness industry continues to be a sector of exciting growth in Asia, proliferated by rapidly rising consumer affluence throughout the region.

  • KKR to acquire significant stake in V3, TWG Tea

    KKR to acquire significant stake in V3, TWG Tea

    Private equity company KKR is to invest as much as S$500 million (US$366 million) into V3, the parent of cafe chain TWG Tea and massage chair retailer Osim, to fund regional expansion. In a deal which mixes equity and financing, KKR will take an unspecified “significant stake” in V3, which is effectively valued at S$1.7 billion. V3 is the company which resulted from last year’s restructuring of once-listed Osim International after plans for an IPO were shelved.

    Keith Magnus, chairman of Evercore Asia, which advised V3 on the deal said that the investment by KKR represents a more than 50 per cent increase in enterprise value compared to when the group was taken private.

    “This is a phenomenal premium for [Ron] Sim,” said Magnus.

    Sim remains the chairman, chief executive and controlling shareholder of V3. Sim, who remains chairman, CEO and controlling shareholder of the business added in a statement: “I am extremely pleased to welcome KKR as a significant shareholder in V3. I am confident this investment will position the company for our next phase of growth, starting with the immediate expansion of TWG Tea in Japan and the US and of Osim in China.

    “We would also be looking into M&A opportunities that are earnings accretive.”

    V3 also owns the rights to retail GNC nutritional supplements in Singapore, Malaysia, the Philippines and Taiwan.

    Sim says V3’s revenue cleared S$600 million last year and profit was also up.

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  • Osim struggles in ‘soft market’

    Osim struggles in ‘soft market’

    Health appliance retailer Osim says its core business is helping it maintain stable gross margins in a retail market it described as “soft” throughout the region.

    Osim’s core is its 546-strong chain of Osim branded stores in 23 countries, which sell therapeutic devices including massage aids. Nearly half of those stores are in Mainland China.

    The company also operates 214 GNC/RichLife stores and 49 TWG Tea cafes with three more planned to open by the year’s end.

    Osim said last week its third quarter sales were S$142 million and profit before tax $10 million. But during the last nine months it has incurred legal fees of $7 million relating to its TWG Tea operation.

    “This has been another challenging quarter where retail sales across the core countries have been soft. This quarter has seen further challenges from gyrating markets and currency turmoil in the region,” the company said in last week’s filing.

    “Despite these challenges, our dominant brand has enabled us to maintain a stable gross margin and cash generative business with cash and cash equivalents growing again in the quarter. We are using our strong balance sheet to invest in new products and continuing our marketing activities.”

    The company expects trading conditions to remain challenging in the short term but says it is cautiously optimistic about its prospects for the remainder of the financial year following the launch of uMagic in key markets and other upcoming planned product launches.

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  • Osim mulls ‘challenging’ quarter

    Osim mulls ‘challenging’ quarter

    Singapore based lifestyle products retailer Osim says trade across all its core markets were soft in the last three months.

    “This has been another challenging quarter,” the company said, declaring sales of SG$159 million and a profit of $29 million.

    “Despite these challenges, our dominant brand has enabled us to maintain a stable gross margin and cash generative business. We are continuing to invest for growth supported by a strong balance sheet.”

    Osim has 560 retail stores in 23 countries, with China maintaining its place as its largest market, where it has 251 stores in 45 cities.

    New products including uMagic, uInfinity Luxe, uDiva, uHip, uSqueez Air, uTrek and uShape Music helped sustain Osim’s dominant position in the category.

    “Our GNC outlets are doing well. We have a total of 220 GNC/RichLife outlets in ONI Global

    and we are growing our sales through new product launches,” the company said.

    Osim also operates 47 TWG Tea outlets, having opened four new ones in the quarter and with plans to open a further 11 in the second half of the year.

    “We remain optimistic on the prospects for the remainder of the year following launch of uMagic in key markets and upcoming planned product launches,” the company said in its stock exchange filing.

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  • Osim Q2 sales hit by weak retail scene

    Osim Q2 sales hit by weak retail scene

    A weak retail scene hit second-quarter sales at Osim International.

    Revenue for the three months to June 30 was down 12.7 per cent to $159.5 million, while net profit declined 25.5 per cent to $21.9 million.

    Despite soft retail sales across its core countries, “our dominant brand has enabled us to maintain a stable gross margin and cash-generative business”, the company said yesterday.

    Osim operates in 23 countries. Its main markets are in North Asia, with 58 per cent of revenue, and South Asia, with 38 per cent.

    The company has 560 Osim outlets in all. “China continues to be our No. 1 market where we are in 45 cities with 251 outlets.

    New products, including uMagic, uInfinity Luxe, uDiva, uHip, uSqueez Air, uTrek and uShape Music, have sustained our dominant position in the market,” the company said.

    It has a further 220 GNC/RichLife outlets in its subsidiary ONI Global, and is growing sales through new product launches, it added. It shed 13 outlets in the second quarter.

    Subsidiary TWG Tea has 47 outlets and the company is targeting to open about 11 new outlets in the second half of the year, it said.

    “We remain optimistic on the prospects for the remainder of the year following the launch of uMagic in key markets and upcoming planned product launches,” it said.

    The company bought back $29 million in shares during the quarter. It declared an interim dividend of two cents per share, similar to a year ago, to be paid on Oct 7.

    Net asset value was 56 cents as at June 30, unchanged from Dec 31 last year. Earnings per share was 2.95 cents, down from 3.87 cents a year back.

    The firm said its balance sheet had strengthened with consolidated net assets at $487 million, and total cash and cash equivalents and fixed income investments of $443 million as at June 30.

    “We are continuing to invest for growth, supported by a strong balance sheet,” it said.

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  • Osim profit plummets

    Osim profit plummets

    Lifestyle company Osim has posted a 53 per cent profit drop for the first quarter on declining sales.

    The retailer of massage chairs and other remedial devices, says sales fell 13 per cent quarter-on-quarter, blaming a lack of new products and a drop-off in mainland Chinese tourists into Hong Kong, a key market for the Singapore-listed company.

    Total first quarter sales were S$150 million, and Osim profit $18 million

    “This has been a challenging quarter where retail sales across the core countries has been
    soft and there have been no new major Osim product launches,” the company said in its earnings statement.

    “Despite these challenges, our dominant brand has enabled us to maintain a stable gross margin and highly cash generative business. We are continuing to invest for growth supported by a strong balance sheet.”

    Osim has 560 retail stores and China remains its largest market, where it has 252 stores in 45 cities.

    “Products including uInfinity Luxe, uDiva, uHip, uSqueez Air, uTrek and uShape Music have sustained our dominant position in the market. We have just launched a new massage chair uMagic in April with favourable response and will be introducing more innovative products this year.”

    Osim also operates 233 GNC/Rich Life stores and 44 TWG Tea stores, with plans for 15 more this coming year.

    “With the upcoming planned new product launches we remain positive about the outlook for
    the remainder of the year.”

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