KUALA LUMPUR (Sept 24): Convenience store chain operator MyNews Holdings Bhd (KL:MYNEWS) saw its net profit fall 40.5% to RM3.83 million for its third  quarter ended July 31, 2026 (3QFY2026), compared with RM6.43 million a year earlier.

Higher administrative, selling and distribution expenses weighed down the bottom line despite revenue for the quarter growing 9% to RM251.76 million from RM230.94 million.

The revenue growth was attributed to the expansion of its retail network, which grew from 659 to 685 outlets and higher in-store sales.

According to its bourse filing on Thursday, the group said that its administration expenses increased 21.5% to RM10.87 million due to ongoing investments in technology and digital transformation talent.

Similarly, sales and distribution related expenses rose 9% to RM50.86 million, in tandem with network growth. Other expenses climbed 17.6% to RM25.8 million, reflecting higher depreciation of new capital expenditure and write-offs from underperforming store closures.

On a quarter-on-quarter basis, net profit rebounded from RM55,000 in 2QFY2026, while revenue rose 11.4% from RM225.97 million, supported by school holidays and recovering footfall following Ramadan.

For the first nine months of FY2026, net profit dropped 36.8% to RM8 million compared with RM12.6 million in the previous corresponding period. Nine-month revenue rose 10.3% to RM716.2 million from RM649.4 million.

MyNews said that it is cautiously optimistic for the rest of the financial year, and will focus on network expansion and optimisation, enhancing fresh food offerings via its manufacturing facilities, and accelerating digital transformation.

No dividend was declared for the quarter under review. The group previously paid a single-tier interim dividend of one sen per share on Aug 6, 2026.

MyNews shares ended flat at 42.5 sen on Thursday, giving the group a market capitalisation of RM318.9 million.