Friday 29 Mar 2024
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KUALA LUMPUR (May 20): InNature Bhd, the retailer and distributor of The Body Shop and Natura products, saw its net profit for the first quarter ended March 31, 2021 (1QFY21) jump 85.34% to RM5.09 million from RM2.75 million in the corresponding financial quarter a year ago.

The group, which was listed in February last year, attributed the stronger earnings on better operating margins following continued vigilance on operating expenses and the absence of listing related expenses. Quarterly revenue grew 1.65% to RM38 million from RM37.38 million.

It declared an interim dividend of 1.5 sen per share, payable on June 16, comprising a second interim dividend of one sen for FY20, and a first interim dividend of 0.5 sen for FY21. This represents a dividend payout ratio of 70% for FY20, and 69.3% for 1QFY21.

It said The Body Shop's businesses in Malaysia, Vietnam and Cambodia were profitable in 1QFY21, while its new Natura business in Malaysia recorded higher revenue and a lower initial gestational loss of RM0.6 million.

The retailer also noted that despite Covid-19 headwinds and Movement Control Order 2.0 in January, it managed to continue operations in most stores throughout 1QFY21. It also mitigated the lower footfall in malls through its e-commerce and "Click/Call and Collect" channels.

"As a result, our The Body Shop operation in Malaysia recorded a lesser decline in revenue of 3.1%, and has returned to flat same-store-sales growth (SSSG) of -0.6% in 1QFY21. Our Vietnam operation recorded revenue growth of 13.9% and SSSG of 5.6% for the reporting quarter. Generally, Vietnam's retail environment benefitted from the country's milder Covid-19 situation in 1QFY21," said InNature gorup managing director Datin Mina Cheah-Foong.

On Cambodia, despite operation being impacted by rising Covid-19 cases in 1QFY21, she said the group managed to register a 39.1% growth in revenue, which was mainly lifted by its second store, which opened in 4QFY20.

As of March 31 this year, InNature's store count stood at 124, unchanged from end-December 2020, as it opened its 38th store in Vietnam during 1QFY21 and exited one underperforming location in Malaysia.

On a quarter-on-quarter basis, however, its net profit declined 33.95% from the RM7.72 million it achieved in 4QFY20, as revenue fell 15.36% from RM44.9 million.

Cheah-Foong said the protracted Covid-19 pandemic will be a key limiting factor of the group's performance in FY21, but the group expects to remain resilient and profitable throughout FY21, adding shareholders should look forward to the group's continued dividend policy.

"We will continue to vigorously execute our digitalisation and omnichannel initiatives, and aim to provide more convenience, faster access and better customer experience for everyone who comes into contact with us," she added.

Shares in InNature closed unchanged at 61 sen today — down three sen from its initial public offering price of 64 sen — valuing the group at RM427.22 million.

Edited ByTan Choe Choe
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