KUALA LUMPUR (Jan 3): Senheng New Retail Bhd, which will be making its debut on Bursa Malaysia’s Main Market on Jan 25, posted a net profit of RM10.69 million for the third quarter ended Sept 30, 2021 (3QFY21), a 22.19% decrease from RM13.74 million a year earlier.
This was mainly due to the group continuing to incur operating and administrative expenses, such as staff salaries, during store closures caused by the Covid-19 lockdown.
Earnings per share fell to 0.86 sen from 1.1 sen previously, the consumer electrical and electronics retailer’s filing with the local bourse showed.
Quarterly revenue slipped 2.56% to RM313.81 million against RM322.07 million, mainly attributable to the shutdown of physical stores due to the Covid-19 lockdown.
There are no comparative figures for the immediate preceding quarter as this is the first interim financial report on the group's unaudited condensed consolidated financial results.
In contrast, Senheng's gross profit increased by approximately RM1.2 million or 1.8% to RM67.2 million from RM66 million for 3QFY20 on replacement of the previous credit token, namely the EZ Credit, which was earned from purchases of selected products, and the introduction of the new credit token known as the “S-Coin” in June 2021.
“While the EZ Credit was treated as deferred revenue until redemption or expiry, the issuing cost of the S-Coin was fully recognised as an operating expense in the month incurred,” according to Senheng.
For the nine months ended Sept 30, 2021, its net profit increased by 21.22% to RM34.05 million, compared with RM28.09 million a year earlier, on the back of higher revenue, gross profit and other operating income. Nine-month revenue rose 12.29% to RM987.72 million from RM879.6 million.
Looking ahead, Senheng said it is optimistic about its prospects in view of the systematic reopening of economic sectors from August 2021.
It intends to continue with its ongoing business strategy to enrich in-store customer experience and provide customers with a wholesome retail experience by opening new and upgrading its chain of retail stores into larger and more appealing formats.
“The group also believes that the PlusOne loyalty programme has significantly contributed to the growth of business and will continue to be integral to the group’s efforts to provide high levels of customer satisfaction and draw both new and repeat customers to shop with Senheng.
“To that end, the group collaborated with its technology partner to launch the new Senheng app in November 2021, which provides access to a lifestyle ecosystem with various third-party merchants offering a host of services and convenience to PlusOne members,” it added.
The group plans to raise RM267.5 million in new proceeds from its initial public offering (IPO) on the Main Market to fund its next transformation phase and shape the nation’s new retail landscape.
The IPO exercise entails the public issue of 250 million new shares and an offer for sale of 139.5 million existing shares at an issue price of RM1.07 per share.