Padini slips into the red in July-Sept quarter due to FMCO

Padini slips into the red in July-Sept quarter due to FMCO
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KUALA LUMPUR (Nov 26):  Padini Holdings Bhd slipped into the red with a net loss of RM16.86 million for its first quarter ended Sept 30, 2021, compared to a net profit of RM20.72 million a year earlier, as a majority of its outlets were closed during the Full Movement Control Order (FMCO) between June 1 and Aug 18.

The fashion retailer reported a loss per share of 2.56 sen compared to earnings per share of 3.15 sen in the same quarter last year.

Quarterly revenue dropped sharply to RM81.38 million from RM310.72 million, the group's bourse filing showed.

On a quarter-on-quarter basis, the RM16.86 million net loss compares to a net profit of RM10.5 million or 2.5 sen per share in the immediate preceding quarter, while revenue plunged 61.2% from RM209.84 million.

Despite its lacklustre performance, the fashion retailer declared a first interim dividend of 2.5 sen per share, to be paid on Dec 31 with an ex-date of Dec 14.

“Retail business in general remains challenging in the financial year due to any potential outbreak of Covid-19 and potential supply chain disruption, increase in material costs, hike in freight charges and other inflation-related issues," the group said in its filing.

“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 returning to profitability for the remaining quarters of the financial year.

“Management 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,” Padini wrote on its prospects for the coming year.

Padini's share price closed two sen or 0.71% lower at RM2.80, giving the group a market capitalisation of RM1.84 billion.

S Kanagaraju