Water Oasis Group posts 34% profit rise despite revenue drop

The Group recorded a $58.8m profit in the six months ending in March 2021.

Beauty services provider Water Oasis Group recorded a $58.8m profit in the six months to March 2021, reflecting a 34.1% increase compared to the same period in 2020.

This is also despite a 14% drop in the Group’s revenue to $314.9m, attributed to decreases in its product and beauty services segment during the pandemic.

“Despite the fall in revenue, patronage and sales were quick to recover in periods when anti-pandemic measures were eased,” Executive Director and CEO Tam Siu Kei Alan said.

“We have been active in brand promotion and in maintaining good online exposure. We have also been diligently planning for the future while the market has been soft, leveraging the weaker rental market to open new outlets in a cost-effective manner.”

The Group recommended an interim dividend of 5.5 cents per share.

Water Oasis’ sales mix comprised of 80.1% services and 19.9% product during the period.

Its beauty services across Oasis brand stores in Hong Kong and Macau suffered a decline in revenue; while its stores in China saw a year-on-year growth.

The Group had introduced new treatments, expanding options for beauty customers. It also opened new stores and upgraded existing outlets.

“The expansion of the Oasis treatment portfolio was just one part of a larger strategy of preparation for growth,” the Group said.

Meanwhile, its product sales also slipped across all brands, except those in China. Its online retail platforms also performed steadily over the same period as its online sales rose 56%.

The Group so far has 11 retail outlets in Hong Kong and Macau.

Within the next six months, it plans to open two new major outlets, including 6,000 sq. ft. of its flagship Glycel Skinpa, in Kowloon Tong; and a new Oasis Beauty centre in Park Central, Tseung Kwan O.