KUALA LUMPUR (June 21): MyNews Holdings Bhd (KL:MYNEWS) posted a net profit of RM1.73 million for its second quarter ended April 30, 2024 (2QFY2024) against a net loss of RM6.28 million in the previous year’s corresponding quarter, thanks to higher share of profit from its joint venture (JV) company and improved profit margin.

This is the group's third consecutive profitable quarter, after its previous quarterly loss in 3QFY2023. MyNews has been loss-making for four financial years since FY2020.

Its 2QFY2024 earnings came on the back of a 10.66% increase in revenue to RM192.77 million from RM174.2 million, driven by improved in-store sales, while its gross profit margin improved from 34.3% to 37.9%, its bourse filing on Friday showed.

It recorded higher earnings before interest, tax, depreciation (including the depreciation of right-of-use assets), and amortisation of RM27.2 million in 2QFY2024, compared to RM17.35 million in 2QFY2023, the group said.

No dividend was declared for the quarter under review.

Compared with 1QFY2024, the group's net profit climbed 36.76% from RM1.27 million, though revenue dipped 1.4% from RM195.52 million amid lower sales.

For the first six months of FY2024, MyNews registered a net profit of RM3 million versus a net loss of RM9.49 million in the corresponding period in FY2023, while revenue increased 8.37% to RM388.29 million from RM358.29 million.

MyNews currently operates 622 outlets, comprising 471 myNEWS outlets, 131 CU outlets, and 20 WHSmith outlets.

The company said it plans to continue to open new stores while enhancing and renovating existing ones where necessary.

“Product mix and services are continually improved to meet market trends and customers’ demand. With these efforts, the group expects sales revenue to continue its upward trend. Consequently, the production volume of FPC (food processing centre) will increase as well, driven by increasing sales at the retail front.

“While it is undeniable that this market segment is becoming more crowded and competition is more intense, the group believes that with its experience, agility and flexibility, there is still room to grow its brands. It will spare no effort in enlarging its store network while improving the financial performance,” MyNews added.

At Friday’s closing bell, MyNews shares rose half a sen or 0.78% to 64.5 sen, valuing the group at RM480.26 million.