KUALA LUMPUR (May 27): Padini Holdings Bhd’s net profit for the third quarter ended March 31, 2022 (3QFY22) more than doubled to RM32.62 million from RM12.19 million a year ago, driven by reopening of the economy which allowed all of its outlets to operate at full capacity.  

Revenue for the quarter jumped 25.28% to RM329.34 million from RM262.87 million in 3QFY21, the clothes retailer’s bourse filing on Friday (May 27) showed. Earnings per share rose to 4.96 sen from 1.85 sen. 

Padini declared a third interim dividend of five sen per share, to be paid on June 30.

Compared to the immediate preceding quarter of 2QFY22, Padini’s net profit was down 46.44% from its record net quarterly profit of RM60.89 million, as revenue dropped 22.9% from RM427.17 million. This is because 2QFY22 benefited from not just economic reopening but also festive season sales — Christmas and Chinese New Year — as well as year-end school holidays that took place in 2QFY22.

Padini noted that its retail business remains in a volatile position, in view of the potential of a major outbreak of Covid-19, supply chain disruptions, increase in material costs, hike in freight charges and other inflation-related issues.

“With the successful implementation of the vaccination programme in Malaysia and barring any major outbreaks due to evolving Covid-19 variants, we are cautiously optimistic of maintaining the profitability for the remaining quarter of the financial year (FY22),” it added.

The group said it will continue to provide value for money products and implement measures to control costs, optimise working capital, preserve cash and streamline its operations to minimise the impact of any potential headwinds.

Shares in Padini closed up 15 sen or 4.92% at RM3.20 on Friday, giving the group a market capitalisation of RM2.11 billion.