KUALA LUMPUR (Dec 19): Mynews Holdings Bhd (KL:MYNEWS) reported a significant jump in net profit to RM3.76 million for the fourth quarter ended Oct 31, 2024 (4QFY2024), a nearly fourfold increase compared to RM947,000 in the same period last year. This marks the fifth consecutive profitable quarter for the convenience store operator.

Revenue for the quarter grew by 12% year-on-year to RM208.44 million, up from RM186.16 million previously, driven by a combination of increased store count and improved in-store sales.

Mynews, which operates convenience store chains under brands such as myNEWS, CU and WHSmith, attributed the improved performance to the addition of 29 new outlets during the year and enhanced operational efficiency.

Gross profit margin for the quarter saw an improvement of 1.7 percentage points, rising from 36.5% to 38.2%.

Despite these gains, higher administrative and selling expenses partially offset the profit increase. Administrative expenses rose 14.7% to RM11.31 million, while selling and distribution expenses grew 17.5% to RM41.57 million, primarily due to the increased scale of operations.

The board did not declare any dividend for the current quarter. The company had previously declared an interim dividend of 0.5 sen per share during the third quarter, which was paid on Nov 8, 2024. This dividend payout is consistent with the 0.5 sen per share declared for the previous financial year.

For the full financial year ended Oct 31, 2024 (FY2024), Mynews returned to profitability with a net profit of RM9.38 million, a significant turnaround from a net loss of RM10.7 million recorded in FY2023.

Full-year revenue grew 10.1% to RM804.2 million, supported by the expansion of its store network. Earnings per share for FY2024 stood at 1.25 sen, a reversal from a loss per share of 1.52 sen in the prior year.

Looking ahead, the group plans to continue its expansion strategy by opening new stores throughout Malaysia, including standalone Maru Coffee outlets. This move signifies its entry into the coffeehouse business segment to capitalise on the growing coffee market.

To date, Mynews has a total of 644 stores, comprising 482 myNEWS stores (including 34 SUPERVALUE outlets), 141 CU stores, 20 WHSmith stores and one Maru Coffee outlet.

"With a continued focus on expanding our businesses and improving operational efficiency, we expect sales revenue to maintain its upward trajectory," the company said.

Shares of Mynews rose 0.5 sen or 0.73% to close at 69 sen on Thursday, resulting in a market capitalisation of RM517.7 million. Year-to-date, the counter has seen a gain of more than 30%.