Chlitina Holding Ltd (麗豐), which sells cosmetics and skincare products, plans to increase its dividend after reporting strong revenue and profit for last year, but said it sees headwinds in the first quarter amid the COVID-19 pandemic.
Net profit last year increased 17.5 percent year-on-year to NT$1.43 billion (US$47.32 million), or earnings per share of NT$18.02, Chlitina said in a statement on Friday last week.
Consolidated revenue expanded 12.24 percent year-on-year to NT$5.14 billion, with gross margin and operating margin rising to 84.07 percent and 34.81 percent respectively, the company said.
Chlitina distributes products under its namesake brand to beauty salon franchises in Taiwan, China and Vietnam.
Steady expansion in its beauty salon franchises and higher profit per store boosted its top and bottom lines to record levels last year, the company said in the statement.
The company’s board of directors has proposed distributing a cash dividend of NT$13 per common share this year — a payout ratio of 72.14 percent — after paying NT$12 last year, Chlitina said.
That is a dividend yield of 7.85 percent based on the shares closing price of NT$165.50 on the Taiwan Stock Exchange yesterday.
However, the COVID-19 pandemic has negatively affected the general business environment this quarter, Chlitina said.
“Under the influence of the outbreak, consumer demand for beauty products has changed,” the statement said. “However, consumers still need basic skincare services and they are more inclined to purchase products through online channels to reduce contact with other people when going out.”
People are looking to beauty salons to provide skincare knowledge via their online channels, it said.
“So far, more than 50 percent of the company’s beauty salon franchises have resumed operations and ordered products from the company, while e-commerce platform Beauty Health Happiness (新美力) also reported strong sales of antibacterial products and masks,” Chlitina said.
The company said it expects the business climate to gradually stabilize, minimizing the impact of coronavirus-related uncertainty on its business, after it received a 25.19 million yuan (US$3.59 million) subsidy from the Shanghai City Government this month.
The company plans to expand its cooperation with General Biologicals Corp (普生), a supplier of medical diagnostic testing kits, to widen its product portfolio, Chlitina said.
Chlitina has a 20.05 percent stake in General Biologicals.
Chlitina on Friday last week began a share buyback scheme to support its share price. The shares have fallen 30.46 percent since the start of the year, compared with the broader market’s 19 percent decline.
The company plans to purchase 1 million shares on the open market at between NT$150 and NT$262 per share until May 12, Chlitina said.
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