Author: moneyKing | Publish Date: 20 Feb 2017, 8:00 PM
By Chester Tay / theedgemarkets.com | February 20, 2017 : 6:33 PM MYT
KUALA LUMPUR (Feb 20): Padini Holdings Bhd's net profit jumped 64.7% to RM54.47 million or 8.28 sen a share in its second financial quarter ended Dec 31, 2016 (2QFY17) from RM33.07 million or 5.03 sen a share a year ago, on improved gross profit margins as there were less markdowns during the quarter under review.
Revenue for 2QFY17 grew 25.4% to RM426.65 million from RM340.38 million in 2QFY16.
The group also declared a third interim dividend of 2.5 sen per share for the financial year ending June 30, 2017 (FY17), payable on March 27.
In a filing with Bursa Malaysia today, Padini attributed the increased revenue to positive same store sales growth achieved, coupled with the eight Brands Outlet stores and five Padini Concept Stores that were opened after 2QFY16.
"Although there was also a 20% (RM18.3 million) increase in operating expenses that was mainly contributed by the increase from rentals and staff salaries for the new stores, the increase in revenue and the improvement in gross margins sufficiently covered for it," said Padini.
"For the quarter under review, the group had managed to improve its efficiencies, having achieved a higher growth in revenues as compared to the growth in operating expenses in spite of the many challenges faced. That said, we note that it was also a historically good quarter with the month long year-end school holidays and the cheer of the Christmas festivities," it added.
For the first half of FY17 (1HFY17), the group's net profit increased by 28% to RM83.09 million or 12.63 sen a share from RM64.9 million or 9.86 sen a share a year ago, while revenue rose 20.8% to RM736.68 million in 1HFY17 from RM609.95 million in 1HFY16.
"The group has concluded the first half of the financial year with a good set of results despite the prevailing challenges of unstable ringgit, rising costs of goods and operations coupled with the current economic situation.
"As the group perseveres on with its stance in continuing to provide value for money, the second half of the financial year will continue to be very challenging but the group is confident in turning in another profitable financial year," said Padini.
Padini's share price closed unchanged at RM2.58 today, giving it a market capitalisation of RM1.7 billion.