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Ossia International: FY2025 Financial Performance and Outlook · Investor Exchange

• 0:02
  Time for another Investor Exchange podcast. Here are your hosts, Matt and Sally.
• 0:08
  Okay, let's dive deep. We've got the latest financial announcement from OSEA
• 0:12
  International Limited right here.
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  We're looking at their results for the full 12 months that ended March 31st, 2025.
• 0:20
  Exactly. And our mission today, well, it's pretty clear. We want to get straight
• 0:24
  to the core findings from the source document.
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  You know, understand the actual financial performance, figure out what drove
• 0:29
  it, and then see what the company itself says about the outlook,
• 0:32
  strictly based on this announcement.
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  All right, let's unpack those main numbers then for the full year versus the year before.
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  It's a bit of a mixed bag, isn't it? Revenue, it gips slightly,
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  down just 0.7%, came in at $29.94 million compared to about $30.17 million.
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  He's a small dip, though it is interesting. If you look just at the last six
• 0:51
  months covered in the report, revenue is actually up 2.7%.
• 0:55
  Bit of contrast there. Hmm. OK. But the profit story for the full year looks better.
• 0:59
  It does. Profit attributable to owners, that was at 6.6 percent.
• 1:03
  So about seven point year or two million dollars for the 12 months.
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  Again, contrasting with the six month figure, which actually showed an 8.0 percent decrease.
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  So different trends short term
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  versus the full year. And then there's the total comprehensive income.
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  That figure really jumped for the full year. Oh, absolutely.
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  A huge increase there. Went from roughly $4.97 million up to $11.255 million.
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  That's a significant swing upwards. And the source does mention the six-month
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  comprehensive income was also up substantially over 30%. So, okay.
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  Revenue's slightly down for the year, but profit and especially comprehensive income way up.
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  What's driving this? Let's start with the revenue dip. Well,
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  the source points pretty clearly to currency exchange rates.
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  It seems the main issue was the new Taiwan dollar, the NTD, weakening against
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  the Singapore dollar, which is their reporting currency.
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  So even though their underlying business in Taiwan, in NTD terms, actually grew.
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  When they converted it back to Singapore dollars for the report,
• 2:02
  it looked like less revenue.
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  Exactly. That translation effect masked the local currency growth.
• 2:07
  Okay, that makes sense for the top line. But the source also mentioned the gross
• 2:10
  profit margin went down. Was that also currency? Yes, primarily.
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  The document attributes that margin squeeze mainly to the NTD depreciating,
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  but this time against the U.S. dollar.
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  Presumably some of their costs of goods are linked to the USD,
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  so the weaker NTD made those costs higher in local terms. Right,
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  higher costs eating into the margin.
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  But still, that doesn't explain the big jump in overall profit.
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  Where did that boost come from? The report mentions a hike in other operating income. Correct.
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  And digging into that, a really significant piece was a one-off game.
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  The source talks about the TUMI brand principle in Taiwan.
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  Apparently, TUMI exercised a right to buy back certain business assets from
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  OSIA, effective basically right after this reporting period ended, April 1st, 2025.
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  And that transaction resulted in a gain for OSIA of around $0.74 million.
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  Ah, okay. So a specific sort of strategic transaction gave the bottom line a nice lift.
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  That was an operational profit in the usual sense, though. Not entirely,
• 3:09
  no. No. A good chunk was that specific gain.
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  The source also mentions another positive contributor, though.
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  Which was? An increase in the share of results they get from their associated company.
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  Okay. And why was that up? The source simply states it was due to improved financial
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  performance at that associate company.
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  It doesn't give specifics on the associate, just that it performed better and boosted Ossia's share.
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  Interesting. So multiple factors at play. Did these things, especially that
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  TUMI asset buyback, ripple through their balance sheet.
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  I think the source mentioned inventory and receivables changes.
• 3:41
  Yes, definitely. The balance sheet reflects that transaction.
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  You see inventories decrease, which makes sense if they sold assets,
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  and you see a big jump in trade and other receivables. That's basically the
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  money owed from the buyback.
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  The source does note that this receivable was collected shortly after the period
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  ended, so it was good cash flow eventually.
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  And bank borrowings also decreased, partly tied, the source says,
• 4:03
  to needing less financing for inventory after that sale.
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  Okay, so that ties the performance to the balance sheet changes.
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  Now, looking forward, what does the company say about the outlook?
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  What risks are they flagging based on this announcement?
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  They're quite upfront about a few potential headwinds.
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  One big one is the possibility of brand license fees being imposed on that associated
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  company we just talked about.
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  The source is clear. If this happens, the impact on Osea's share of profits
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  could be, quote, significant.
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  And they don't know the amount yet. So, uncertainty there. Right.
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  That could definitely change the picture going forward. Anything else? Yep.
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  They also mentioned potential impacts from recent U.S. tariffs given their operations in Taiwan.
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  That could mean higher costs, potentially making them less competitive.
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  And sort of relatedly, they also flagged the rising tensions in the Taiwan Strait
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  as another risk factor for their operations there.
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  Geopolitical risks on top of potential tariff costs and that license fee uncertainty.
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  Given all that, it probably explains their dividend decision. I think so.
• 5:07
  The source explicitly states they decided not to declare a dividend for this
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  period, unlike the year before.
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  The stated reason was precisely to conserve capital, you know,
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  considering these economic and geopolitical uncertainties they've outlined. Right.
• 5:19
  Okay, so let's quickly recap our deep dives based just on this source document.
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  Osea International saw slightly lower reported revenue for the full year,
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  mostly due to currency effects hiding underlying local growth.
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  But overall profit and especially comprehensive income were significantly up.
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  This was boosted by better results from an associate company and,
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  importantly, a large one-off gain from that TUMI asset buyback.
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  They did face margin pressure, again linked to currency, and saw related shifts
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  on their balance sheet from the buyback.
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  Which leads us to a final thought for you, the listener.
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  When you analyze a company's results like these, it really makes you consider
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  how much is driven by the core day-to-day business versus these sort of powerful external forces.
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  With Osea, you see currency swings, specific partner decisions like the buyback,
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  potential tariff impacts, even geopolitical tensions, all shaping the numbers
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  reported in this announcement. It really underscores how interconnected finance
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  is with the wider global landscape, doesn't it?
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  Sometimes these external factors can almost overshadow the underlying operational
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  story. Something to think about.
• 6:23
  Absolutely. A great point to end on. Thanks for joining us for this deep dive.
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  Music.