Parkson earnings up to RM63.29mil in Q1

Tough time: Parkson says its retailing division posted an operating loss of RM25mil despite an 8 revenue growth due to weak consumer sentiment.

KUALA LUMPUR: Parkson Holdings Bhd made an operating loss of RM25mil in the first quarter of its new financial year, but a RM136.33mil gain from a partial disposal of a former subsidiary more than tripled its earnings.

Its earnings grew to RM63.29mil in the quarter ended Sept 30 from RM20.21mil achieved a year earlier on a 10% higher revenue of RM933.39mil, the company said in its latest quarterly report to Bursa Malaysia.

The Lion Group member said its retailing division posted an operating loss of RM25mil despite an 8% revenue growth due to weak consumer sentiment.

Its “property and others” division, meanwhile, made a negligible contribution of RM270,000 to profit.

Parkson’s retail operations in Malaysia recorded a negative same-store sales (SSS) growth of 15% for the quarter under review due to weak consumer sentiment following the implementation of goods and services tax and the weakening in the ringgit.

In the last financial year ended June 30, 2015, the Malaysian Parkson operations – which comprised 42 stores as at June 30 – also reported a negative SSS growth of 4.5%, according to Parkson’s annual report.

For the first quarter ended Sept 30, 2015, profit from the home country’s retail operations shrank 59.2% to RM10.93mil.

Its various overseas Parkson operations did worse during the period, sinking into the red.

The retailing business in China, with 60 stores as at June 30, swung to a RM32.67mil loss from a profit of RM16.28mil in the corresponding quarter last year.

“The operating loss (in China) for the current quarter under review was mainly attributable to weak sales growth, and costs incurred by new business ventures and new stores during their ramp-up period,” Parkson said.

Meanwhile, the group’s loss in Vietnam and Myanmar narrowed 4.1% to RM3mil while its Indonesian operation incurred a RM531,000 loss against a RM306,000 profit a year earlier.

What propped up Parkson Holdings’ bottom line was the disposal of about 30% equity interest in Parkson Hanoi Co Ltd by Parkson Vietnam Co Ltd, a unit of Parkson Holdings Bhd’s Singapore-listed subsidiary Parkson Retail Asia Ltd.