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Courts sees full-year profit drop despite higher sales

Singapore-listed electrical and furniture retailer Courts Asia posted a 32 per cent drop in net profit for the 12 months ended March as margins shrank and finance and administrative costs increased.

SINGAPORE: Singapore-listed electrical and furniture retailer Courts Asia posted a 32 per cent drop in net profit for the 12 months ended March as margins shrank and finance and administrative costs increased.

Courts earned S$28.3 million in fiscal year 2013/14, down from S$41.4 million in the previous fiscal year, it said in a statement on Thursday.

This was despite a 4.6 per cent rise in revenue to S$830.3 million.

Courts said gross profit margin declined marginally mainly due to a shift in the sales mix towards electrical and digital products.

Distribution and marketing, administration and financial expenses also rose during the 12-month period.

Courts opened its second Megastore in Malaysia in January this year, while its flagship Megastore in Indonesia is set to open in September.

Looking ahead, Group CEO Terry O'Connor predicted a difficult environment in the near term.

The medium-term outlook was better, however, with a pick-up in demand expected in Singapore as more new HDB flats are completed in the next two years.

Singapore currently accounts for around two-third of Courts' sales. 

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