Centurion Club: FOOD & BEVERAGES + FOOD & DRUG RETAILING + RETAILERS
Regional luxury watch retailer Cortina C41 Holdings has achieved the distinction of winning in all categories in this year’s Centurion Club. It emerged top for returns to shareholders, growth in profit after tax, and best in weighted return on equity.
That puts it soundly as the overall sector winner in the industry classification of Food & Beverages + Food & Drug Retailing + Retailers. To crown off its achievement, it beat all other Centurion Club members to be the overall winner.
Cortina’s achievements were certainly not an overnight fluke. At last year’s Billion Dollar Club (BDC), the well-established company, founded by executive chairman Anthony Lim, was already the sector winner, plus coming out tops for returns to shareholders and return on equity (ROE).
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As Lim described in his annual report address for FY2024 ended March 31, the company is constantly improving its offerings while steadily expanding its boutiques. During the year, Cortina launched 15 new boutiques, all in prime locations, to maximise access, brand visibility, and status.
For example, Cortina launched its Sincere Haute Horlogerie flagship store at Pavilion Kuala Lumpur. The two-storey, 5,000 sq ft boutique features a private vehicle drop-off point and space for a bar or fine dining to improve client engagement. In addition, Cortina opened SHH boutiques at Taipei 101 in Taiwan and Siam Paragon in Bangkok.
As a key retail partner of the world’s biggest names in this industry, Cortina opened a Patek Philippe boutique at Bangkok’s Central Embassy in Thailand, as well as two Tudor boutiques at Raffles City Shopping Centre in Singapore and Pavilion Damansara Heights in Kuala Lumpur. The company also launched a Jacob & Co. boutique at The Peninsula Hong Kong luxury hotel. It expanded the presence of our Franck Muller boutiques in Malaysia, Hong Kong and Thailand. Under its Sincere Watch banner, a new Zenith boutique was opened at Siam Paragon in Bangkok.
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Besides new boutiques, Cortina makes it a point to invest in the refurbishment of existing spaces. The seven boutiques that underwent such works include the revamped Patek Philippe boutique at The Shoppes at Marina Bay Sands in Singapore, two multi-brand boutiques at Raffles City Shopping Centre and Mandarin Gallery in Singapore, its Suria KLCC store in Kuala Lumpur, and the Rolex boutique at Imago Shopping Mall in Kota Kinabalu, Sabah.
For the most recent FY2024, Cortina’s earnings dropped by 19.4% y-o-y to $67.3 million due to higher operating costs amid steady revenue, no thanks to softer macroeconomic conditions that “moderated” spending on high-value items. However, compared to FY2020, Cortina’s earnings were just $43 million. Despite the lower earnings, the company has held its generous dividend payout steady at 26.5 cents per share versus FY2023.
In the FY2024 annual report, Lim, citing the International Monetary Fund, warns of slow but steady global growth, with the US projected to push world output amid lingering high inflation, lacklustre demand in China and Europe, and persistent geopolitical tensions. “Nonetheless, the group’s healthy balance sheet and robust cash position stand us in good stead in the coming years. Prudent capital management remains a key strategy, providing Cortina with the financial flexibility to pursue strategic opportunities for future growth,” he adds.
