KUALA LUMPUR (Feb 26): Padini Holdings Bhd’s net profit was down by almost half to RM10.65 million in the second quarter ended Dec 31, 2020 (2QFY21), from RM20.18 million in the preceding quarter, as sales fell, following  the reinstatement of the conditional movement control order (CMCO).

Revenue dropped 20.84% to RM245.96 million from RM310.72 million in 1QFY21, the group’s bourse filing showed.

On a year-on-year basis, the group’s net profit slumped 80.91% from RM55.79 million in 2QFY20, while revenue was only about half of the RM495.12 million reported.

The 2QFY21 earnings, however, compare favourably with the net loss of RM16.84 million reported in April-June quarter, after the MCO was imposed from March to May last year.

For the cumulative six-month period ended Dec 31, 2020, Padini’s net profit plunged 58.39% to RM31.37 million from RM75.40 million in the previous July-December period, while revenue shrank to RM556.68 million from RM833.16 million.

Due to the weak performance, the group did not pay a dividend for the period.

On prospects, Padini said its retail business is impacted by the pandemic to varying degrees, both in terms of sales, as well as profitability.

Hence, it said this financial year remains challenging, especially when the MCO has been reimposed and the outlook is still unpredictable, as the full impact of the  pandemic cannot be ascertained, pending the successful implementation of the vaccination programme.

“The implementation of MCO 2.0 will certainly have an impact on the upcoming quarter. Management will continue implementing measures to control costs, optimize working capital, preserve cash and streamline its operations to minimize the impact,” it added.

Padini shares closed up three sen or 1.03% at RM2.94 today, valuing the group at RM1.93 billion. Some 1.2 million shares were traded.