KUALA LUMPUR (March 6): GPA Holdings Bhd has ceased trading and distribution of personal care products under its subsidiary Kenola Sdn Bhd in order to mitigate the negative impact and losses the sector has had on the group.
In a stock exchange filing today, the automotive batteries manufacturer said the business had sustained losses and was anticipated to continue incurring losses, if operations were allowed to continue.
“The said business is not expected to be able to turnaround in the near future, due to very intense market competition in the personal care products sector, both in terms of pricing and the abundance of choice in brands,” GPA said.
“The exceptional items relating to the cessation for FY19 (year ending March 31, 2019) financial statements are expected to be about RM1.35 million,” it added.
According to the group’s 2018 annual report, Kenola is involved in the retailing of cosmetics and skincare products.
GPA is sad that its FY19 earnings are expected to be affected by an impairment loss and retrenchment cost to be incurred. However, it expects an improvement in its overall operating results for FY20.
Shares of GPA closed unchanged today at 8.5 sen, leaving the group with a RM83.34 million market capitalisation.