Padini's 2Q net profit declines to RM53.10mil

KUALA LUMPUR: Padini Holdings Bhd's net profit for the second quarter (2Q) ended Dec 31, 2023, fell 27.4 per cent to RM53.10 million from RM73.14 million recorded in the same period a year ago, due to a drop in the gross profit margin.

Revenue slipped 1.8 per cent to RM500.11 million from RM509.48 million previously, following a decline in topline sales, it said in a filing with Bursa Malaysia.

For the first six months ended Dec 31, 2023, the garment company recorded a 34.6 per cent drop in net profit to RM79.76 million from RM122.00 million in the same period previously.

Meanwhile, revenue fell slightly to RM888.30 million from RM888.57 million a year ago.

Padini also declared a third interim dividend of 2.5 sen per share (single-tier) for the financial year ending June 30, 2024, payable on March 29, 2024.

On prospects, Padini said the retail business remains challenging due to the deterioration in purchasing power arising potentially from the rising cost, trade tensions and rising inflation and interest rates.

"However, supply chain issues, material costs and freight charges seem to have stabilised although there may still be some further increases in the short term.

"Despite the potential challenges, we are optimistic in performing satisfactorily for the current financial year," it said. - Bernama

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