LUXURY watch retailer Cortina posted a 10 per cent drop in net profit to S$27.8 million for the first half of its 2025 fiscal year, down from S$30.9 million in H1 FY2024.
The decrease in net profit was due to the increase in operating expenses outpacing revenue growth for the half year ended Sep 30, the mainboard-listed company said on Tuesday (Nov 12).
Its H1 revenue was up 5.5 per cent at S$413 million, from S$391.3 million in the year-ago period.
But operating expenses – comprising mainly staff costs, rental expenses, depreciation and other costs – also rose, by 9.3 per cent to S$90.2 million.
The group attributed this to higher rental expenses and depreciation costs, including property, plant and equipment as well as right-of-use assets depreciation.
Cortina said that that this is in line with its strategic expansion plan. It added that the higher costs were incurred in the expansion of its new stores in the past six months.
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It expects to remain profitable in the coming year, despite economic headwinds and barring unforeseen circumstances.
No dividend was declared for the period, as was the case a year ago.
Earnings per share stood at S$0.168 for H1 FY2025, down from S$0.187 in the year-ago period.
Competitor luxury watch retailer The Hour Glass also posted its financial results on Tuesday, reporting a 20 per cent decrease in H1 earnings in the first half to S$61.4 million, from S$77 million the year prior.
Cortina shares closed flat at S$2.80, before the results were released.
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