KUALA LUMPUR (Oct 1): Clothing retailer Kamdar Group (M) Bhd aims to manage its online platform and digital environment as part of its business strategy as the nation grapples with the Covid-19 pandemic.

In a commentary of its prospects in its financial statements for the quarter ended June 30, 2021, Kamdar said it will continue its efforts in implementing proactive measures including resource management as well as cash flow and inventory management to ensure cost optimisation, risk planning and assessment so as to weather the economic impact of Covid-19 on the group’s operating margin.

For the financial quarter ended June 30, 2021, Kamdar returned to the black with a net profit of RM234,000, from a net loss of RM792,000 in the preceding quarter. Revenue was RM19.58 million, marginally higher than RM19.46 million quarter-on-quarter.

In its Bursa Malaysia filing, Kamdar said there were no comparative figures disclosed for the current quarter and the cumulative period-to-date results following the change in the financial year end from March 31 to June 30.

Kamdar attributed its marginally higher revenue from the preceding quarter ended March 31, 2021, to the “seasonally robust Hari Raya Aidilfitri festive sales”.

“However, the positive sales momentum was disrupted in May 2021 amidst the nationwide movement control order (MCO 3.0) from May 12 to June 7, followed by a nationwide full MCO (FMCO) from June 1 to 28, owing to surges in Covid-19 infections. Movement restrictions imposed via MCO 3.0 and FMCO had halted all business operations deemed non-essential, including the group’s business operation, effectively making April 2021 the only productive month for the current quarter,” it said.

Despite the marginal increase in revenue, Kamdar’s gross profit decreased by RM1.7 million or 21.8%, with gross profit margin plunging to 31.4% from 40.2% in the immediate preceding quarter.

This the group attributes to promotional sales in conjunction with Hari Raya Aidilfitri festivities and stock clearance. In addition, the group said it also accounted for inventories written down during the current quarter, which caused the group’s loss before tax to widen by RM1 million from RM400,000 in the preceding quarter.

“This is in tandem with lower GP (gross profit) but partially compensated by fair value gain on investment properties of RM900,000 and other income from the government’s wage subsidy programme of RM700,000,” it said.

The group closed its Jalan Tuanku Abdul Rahman outlet in Kuala Lumpur on Thursday to consolidate the business of two branches situated within close proximity. The shuttered outlet is located near Kamdar’s headquarters on the same street.

It said the closure would reduce operational expenses and let it out to an external party for better returns to the group.

This is the group’s second branch closure following the shuttering of its Puchong branch as its tenancy had expired on July 31 and a decision was made to not renew it. Meanwhile, Kamdar relocated its Kota Kinabalu branch to a smaller lot in 1 Borneo Hypermall, Jalan Sulaman.

Shares of Kamdar hit a year-to-date high of 36 sen on May 12, falling back to the 26 sen level within the week. The stock stood at 27 sen by the noon break on Friday for a market capitalisation of RM52.47 million.