EIG to spend RM60m to expand corporate outlets

SHAH ALAM: Beauty and wellness group, Esthetics International Group Bhd (EIG), will be spending RM60 million to build corporate outlets in 10 different locations locally and abroad as part of its expansion plans, its executive chairman Eddy Chieng Ing Huong said.
"We currently own and manage 73 corporate outlets comprising 56 AsterSpring skin care salons and 17 retail kiosks in Malaysia, Singapore, Hong Kong and Thailand, which 59% of EIG's revenue comes from Malaysia and the rest from the region," he told reporters after its AGM, without setting a time frame for its expansion plans.
EIG recently received approval for the incorporation of a direct professional distribution company in Indonesia, which it plans to start in the second half of this year (2H14), its group CEO Roderick Chieng Ngee Kai, who is the son of Ing Huong, said.
EIG has exclusive distributorship for Dermalogica and Averine skin care products and Tisserand aromatheraphy and beauty products in Indonesia.
Corporate salons, also known as professional distribution and sales, contributes about 57.7% to group revenue as at March 31, 2014, while its product distribution and others contribute the rest.
EIG's product distribution division, which accounts for 42.15% of group revenue, currently has exclusive rights to distribute Dermalogica skin care, Davines professional hair care and Tisserand aromatherapy and beauty products to more than 1,000 independent professional salons across Asean and Hong Kong.
EIG also produces and distributes its own brand Clinelle skin care products.
The company posted revenue of RM143 million for the financial year ended March 31, 2014 (FY14). In its first quarter ended June 30, 2014 EIG reported a net profit of RM3.77 million, an increase of 1.34% from RM3.72 million last year.
Shareholders yesterday approved a final single-tier dividend of 3% or 1.5 sen for FY2014, bringing the total dividend paid and payable for FY2014 to 6% or 3.0 sen per share.
Ngee Kai said the payment represents an increase of 40% over the prior year.
EIG's share price closed unchanged at at RM1.26 yesterday, with 18,100 shares volume traded. In the last one year the stock has gained 78.1%.