This article first appeared in The Edge Financial Daily, on January 28, 2016.

KUALA LUMPUR: Caring Pharmacy Group Bhd’s net profit fell 8.4% to RM1.92 million or 0.88 sen a share for the second financial quarter ended Nov 30, 2015 (2QFY16), from RM2.09 million or 0.96 sen a share a year ago, mainly due to lower margin arising from lower selling price  as a result of market competition.

Revenue for 2QFY16 grew 10.4% to RM98.29 million from RM89.01 million in 2QFY15, mainly contributed by the 13 new outlets opened during its financial years 2015 and 2016, coupled with revenue growth from existing outlets.

In a filing with Bursa Malaysia yesterday, Caring Pharmacy said during the quarter, it established a new shopping complex outlet and closed down one high-street outlet.

For the cumulative six months ended Nov 30, 2015 (1HFY16), its net profit rose 11% to RM2.93 million or 1.35 sen a share from RM2.64 million or 1.21 sen a share a year ago.

Revenue rose 7.6% to RM190.84 million in 1HFY16 from RM177.41 million in 1HFY15.

“Pressure from poor economic conditions and the depreciation of the ringgit against the US dollar continue to force consumers to face inflation, which results in cautious spending,” Caring Pharmacy said.

However, the group said it will carry out a sales campaign to boost its revenue, especially for the upcoming festive season,  to mitigate the negative impact from the aforementioned factors.

Caring Pharmacy shares rose one sen or 0.53% to close at RM1.90 yesterday, with a market capitalisation of RM411.5 million.