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