KUALA LUMPUR (June 18): MyNews Holdings Bhd's (KL:MYNEWS) net profit for its second quarter fell sharply from a year earlier, mainly due to higher operating expenses.
Net profit for the three months ended April 30, 2026 (2QFY2026) plunged 97% to RM55,000 from RM2.28 million previously, the retail convenience chain said in a filing on Thursday.
Administrative expenses rose 20% to RM10.87 million, partly due to the recruitment of skilled personnel in areas such as process automation and artificial intelligence, as well as the strengthening of its commercial and operations teams.
Selling and distribution expenses increased 12.7% to RM47.95 million amid the continued expansion of its retail network, while other expenses climbed 5.4% to RM23.28 million, mainly due to higher depreciation charges from investments in new retail outlets and right-of-use assets, the group said.
MyNews' quarterly revenue, however, rose 11.6% year-on-year to RM226 million from RM202.6 million, supported by an expanded outlet network, which increased by 65 stores from 639 to 704, as well as improved in-store sales.
Gross profit margin narrowed to 37.5% from 39.5% a year earlier, as cost of sales grew faster than revenue due to changes in product mix and in-store promotional activities.
MyNews declared a one sen dividend, up from 0.5 sen in 2QFY2025, with the payment date to be announced later.
Looking ahead, MyNews said it remains cautiously optimistic about its performance for the remainder of the financial period despite prevailing macroeconomic uncertainties, including inflationary pressures, shifting consumer spending patterns and fluctuating operating costs.
It said it will focus on expanding and optimising its store network by increasing its footprint while rationalising underperforming outlets to improve overall efficiency.
The group will also seek to improve gross margins through better procurement strategies, supplier negotiations and product mix optimisation, while maintaining disciplined cost control to manage rising labour, rental and utility expenses.
MyNews shares ended half a sen or 1.1% higher at 46.5 sen on Thursday, giving the group a market capitalisation of RM348.9 million.