KUALA LUMPUR (May 26): The Body Shop and Natura brand products distributor InNature Bhd saw its net profit for the first quarter ended March 31, 2022 (1QFY22) fall 11.1% to RM4.53 million from RM5.1 million reported a year earlier on lower revenue reported for the current quarter.

Consequently, earnings per share declined to 0.64 sen from 0.72 sen.

In a local bourse filing on Thursday (May 26), the group said its 1QFY22 revenue slid by 11.21% to RM33.74 million from RM38 million due to lower revenue contributions from its Malaysian, Vietnamese and Cambodian operations.

On a quarterly basis, the group's net profit tumbled by 41.61% from RM7.76 million registered for the immediate preceding quarter while revenue dropped by 22.75% from RM43.68 million in 4QFY21.

Commenting on the group's latest financial performance, InNature group managing director, Datin Mina Cheah Foong, said its operating environment in 1QFY22 was impacted by the rising Omicron cases and the compulsory quarantine of close contacts.

"Our remote selling channels comprising e-commerce, conversational commerce and social selling continued to contribute a significant portion to the group revenue despite almost all of our stores being in full operation during the reporting quarter.

"Remote selling channels made up 17% of the group revenue in 1QFY22," she shared.

Meanwhile, Cheah said the group will continue to invest in store development with the opening of the new Activist Makers Workshop store, its most sustainable concept store in Malaysia, and its 40th physical location in Vietnam.

The group is also in active negotiations with landlords on potential locations in all of its markets.

"Our new enterprise resource planning system has gone live and is being rolled out in phases to our stores, and we are confident that this investment will enhance our omnichannel offerings.

"Overall, we believe that as long as the economy remains open, our performance will improve year-on-year for 2QFY22 and for the financial year ending Dec 31, 2022," she added.

The group continued to be in a net cash position with total cash and other investments of RM50.6 million as at March 31, 2022.

Shares in InNature settled one sen or 1.67% lower at 59 sen, giving it a market capitalisation of RM416.47 million.