SINGAPORE : Just one day after issuing a profit warning, Global
Active, which distributes the GNC brand, has announced that chief
operating officer Serene Tan has sent in her resignation
letter.
Earlier, the company gave more details of its financial
position.
It says it expects to stay in the black for the full-year, but that
the earnings will come much lower than earlier forecast.
Global Active says its operating profit is being affected by
poorer-than-expected sales and losses sustained in China and
Malaysia.
And it is also warning that its bottom line will be hit by losses
incurred in its acquisition of the GNC business in Australia.
At the start of its financial year last May, Global Active had high
hopes, saying it expected to see higher turnover and profits.
But by November, it had hit a snag in its expansion plans in China
and Malaysia, with delays in product approvals and high operating
costs.
China chalked up almost half a million in losses in its first two
months of operations alone, in November and December.
To stem the tide, Global Active says it is in talks to appoint
sub-distributors for GNC products in China.
And it is applying for licences so that it can set up its own chain
of GNC retail stores there.
As for Malaysia, Global Active says second half losses will be more
than the $340,000 incurred in the first six months.
It is delaying planned store openings and may relocate
underperforming ones.
After Wednesday' warning, Global Active dipped to new 52-week low
of 19.5 cents; it closed Thursday at 20.5 cents, a drop of 12.8
percent. - CNA