Padini posts stronger 2Q profit but warns of Covid-19 impact

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KUALA LUMPUR (Feb 26): Fashion retailer Padini Holdings Bhd’s net profit grew 4.86% to RM55.79 million in the second quarter ended Dec 31, 2019 (2QFY20), from RM53.2 million in the corresponding quarter a year earlier, thanks to increased sales after the opening of four new stores.

Quarterly revenue rose 7.04% to RM495.12 million from RM462.58 million, the group's stock exchange filing today showed. It declared a third interim dividend of 2.5 sen a share, payable on March 30.

For the cumulative first six months ended Dec 31 (1HFY19), Padini’s net profit climbed 5.95% to RM75.40 million from RM71.17 million, while revenue rose 5.15% to RM833.16 million from RM792.36 million.

On prospect, Padini said the retail business in general is impacted by the outbreak of Covid-19 to varying degrees, both in terms of sales as well as supply chain.

“We are monitoring the situation closely and will respond accordingly to minimise the impact. The government is in the midst of finalising a stimulus package and with support from our business partners [these] are expected to lessen any adverse impact,” it noted.

Padini shares closed one sen or 0.31% higher at RM3.24 today, giving it a market capitalisation of RM2.13 billion.