KUALA LUMPUR (Sept 24): Retail convenience store chain operator MyNews Holdings Bhd (KL:MYNEWS) posted its fourth consecutive quarter of profits, partly helped by improved profit margin and higher share of profit in its jointly controlled entity.
The company reported a net profit of RM2.63 million for the third quarter ended July 31, 2024 (3QFY2024), reversing a net loss of RM2.16 million in the same period last year. Revenue rose 11.67% to RM207.47 million from RM185.79 million, according to its filing with the stock exchange on Tuesday.
“Contributing factors to the better performance (also) include increase in number of outlets from 593 to 606, increase in in-store sales brought about by better product mix and operational improvement,” said MyNews.
Gross profit jumped 17.4% to RM77.27 million from RM65.81 million, while the gross profit margin improved to 37.2% from 35.4%. Earnings before interest, tax, depreciation (inclusive of depreciation of right-of-use assets), and amortisation (Ebitda) increased to RM28.29 million, compared to RM21.45 million in the corresponding quarter.
Share of profit from the jointly controlled entity was RM913,000, 14.4% higher than RM798,000 recorded in the prior year.
However, earnings were partly offset by higher administrative expenses, which grew 19.1% year-on-year, and selling and distribution expenses, which rose 6.8% year-on-year. Other expenses also rose by 8.7%, largely due to increased depreciation of right-of-use assets and property, plant, and equipment write-offs.
It declared an interim dividend of 0.5 sen per share, amounting to RM3.75 million for the quarter under review.
Compared to 2QFY2024, the group’s net profit surged 51.73% from RM1.73 million, while revenue increased 7.62% from RM192.77 million.
For the cumulative nine months ended July 31 (9MFY2024), MyNews recorded a net profit of RM5.62 million, compared to a net loss of RM11.65 million in the same period last year. Cumulative revenue for 9MFY2024 rose 9.5% to RM595.75 million from RM544.08 million.
On its prospects, MyNews noted that its retail brand CU recently expanded into the East Coast of Peninsular Malaysia, opening four outlets in Pahang, one in Terengganu, and four in Kelantan.
Simultaneously, the opening of new stores in other parts of the country is ongoing, while the existing stores are improved and revamped whenever necessary, it said.
To date, MyNews’ total store count stands at 631, comprising 476 myNEWS outlets (including 34 SUPERVALUE locations), 135 CU stores, and 20 WHSmith branches.
The company also said its food processing centre’s (FPC) production volume will continue to grow in tandem with retail sales. With ongoing support from its Korean and Japanese business partners in food product development and production, the FPC remains innovative in delivering high-quality products to meet consumer demand.
In addition, MyNews announced that its standalone Maru Coffee café, operated by its wholly owned subsidiary Mymaru Sdn Bhd (formerly Bison Foods Sdn Bhd), will be launched in the fourth quarter of FY2024.
“With the continuous efforts to grow the retail businesses, while committed to operational improvement, the group expects the sales revenue to continue its upward trend,” MyNews added.
Shares of MyNews closed down half a sen or 0.83% to 60 sen on Tuesday, giving the group a market capitalisation of RM450.2 million. The counter has risen over 15% since the beginning of this year.