Thursday 28 Mar 2024
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KUALA LUMPUR (April 27): Caring Pharmacy Group Bhd’s net profit for the third quarter ended Feb 29 (3QFY16) plunged 78.7% to RM1.62 million, from RM7.60 million a year ago, as margins were hit by lower selling prices caused by competition.

Profits were also affected by lower advertising and promotion income, the company said in a filing with Bursa Malaysia.

Revenue rose 10.1% to RM103.40 million, from RM93.89 million, thanks to higher sales resulting from aggressive and extensive promotional campaigns, and additional revenue from new outlets.

“During the quarter under review, we established an additional one new shopping complex outlet, one new high street outlet and closed down 1 shopping complex outlet. As of Feb 29, we have a total of 107 community pharmacies,” said Caring.

For the nine months ended Feb 29 (9MFY16), the group’s net profit dropped 55.6% to RM4.55 million, from RM10.24 million for 9MFY15.

Revenue however, rose 8.46% higher to RM294.23 million, from RM271.29 million.

Caring said it expects consumer to slowly get used to the Goods and Services Tax implemented a year ago, leading to a positive impact on the group’s revenue.

“The group’s operating environment remains challenging and competitive, as it is still battling a price war, which would pressure operating profits,” it added.

Caring shares closed three sen or 1.69% higher at RM1.80 today, with only 8,000 shares traded.

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