MyNews 4Q net loss narrows q-o-q on higher in-store sales

MyNews 4Q net loss narrows q-o-q on higher in-store sales
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KUALA LUMPUR (Dec 22): MyNews Holdings Bhd reported a smaller net loss of RM8.89 million for the fourth quarter ended Oct 31, 2021 (4QFY21), compared with RM14.92 million in the immediate preceding quarter, as a relaxation of the lockdown boosted in-store sales.

Loss per share narrowed to 1.3 sen from 2.19 sen, the convenience store operator’s bourse filing showed.

Revenue rose 10.87% to RM104.08 million from RM93.89 million in 3QFY21.

MyNews said its average gross profit margin decreased to 28.3% from 29.9% in 3QFY21 mainly due to a change in product mix favouring the lower margin products.

“Other contributing factors to the loss include the additional costs incurred in establishing and promoting the new CU business as new stores were launched in new States while the business was still undergoing a period of gestation since the first store was launched barely half a year ago,” it added.

On a year-on-year basis, MyNews’ net loss widened from RM5.77 million in 4QFY20, due to the nationwide lockdown. Revenue was down 9.67% from RM115.23 million.

For the full financial year, the group’s net loss widened to RM43.07 million from RM9.84 million in the previous year.

Full-year revenue fell 18.15% to RM400.59 million from RM489.39 million.

On prospects, the group said it will continue to grow the number of CU stores, myNEWS SUPERVALUE and myNEWS CVS stores and expand the omnichannel sales by working closely with strong partners to deliver on demand seamlessly.

“The group is hopeful for a continuing business improvement barring any disruption from any unforeseen circumstances, especially the new wave of Covid-19.

“With the strong measures already put in place as a result of the group’s re-positioning initiatives, we look forward to be back on track to regain our lost business and continue to improve thereafter,” it added.

MyNews shares closed down half a sen or 0.58% at 86 sen, giving it a market capitalisation of RM583.32 million. The counter saw 813,100 shares changing hands.

MyNews shares have risen 38.71% year to date.

S Kanagaraju