KUALA LUMPUR (May 24): Parkson Holdings Bhd reported a net profit of RM20.68 million for the first quarter ended March 31, 2023 (1QFY2023), against a net loss of RM8.63 million a year earlier, as its retail operations performed better, with higher sales generated during the festive and holiday seasons.

Earnings per share stood at 1.8 sen, compared to loss per share of 0.76 sen in 1QFY2022, Parkson said in a bourse filing.

Quarterly revenue rose 1.18% to RM837.79 million from RM828.04 million a year earlier.

The results were also better when compared to the immediate preceding quarter (4QFY2022), when the group recorded a net loss of RM52.29 million on revenue of RM682.55 million.

Parkson said its retailing division recorded a marginally higher year-on-year revenue of RM822 million in 1QFY2023, with operating profit increasing 49% to RM113 million.

The group's Malaysia retailing operations continued to witness a strong recovery in its stores' footfall in tandem with the full lifting of movement restrictions, along with the pent-up demand from eager shoppers.

The Malaysian operations recorded a profit of RM56.44 million, up 60% compared with RM35.32 million in 1QFY2022, as revenue grew 25% to RM201.2 million from RM160.38 million.

Parkson's China operations' profit also grew 37% to RM57.58 million, from RM42.14 million a year earlier, while revenue dropped 5% to RM618.56 million from RM653.54 million.

As for its Vietnam operations, the group's loss narrowed to RM784,000 from RM1.45 million, as revenue fell 12% to RM2.14 million from RM2.44 million.

On prospects, Parkson expects its retailing operations in Malaysia to benefit from the Hari Raya buying, while its China market will be driven by the resumption of cross-province and cross-border travel in China.

“The group strives to enhance its operating efficiencies and cost improvements strategies, besides continuing to diversify the income sources to fully seize the opportunities, and promote long-term sustainable development of its businesses,” it said.

Shares in Parkson closed 1.5 sen or 11.11% higher at 15 sen on Wednesday (May 24), giving the group a market capitalisation of RM172.34 million.