Parkson 3Q net loss swells to RM92m as shoppers stay home amid Covid-19 outbreak

KUALA LUMPUR (May 22): Parkson Holdings Bhd’s net loss widened to RM92.33 million for the third quarter ended March 31, 2020 (3QFY20), from RM6.48 million last year, on softer retail sentiment no thanks to the Covid-19 pandemic.

This marks the eighth consecutive loss-making quarter for the department store operator. The current loss-making quarter is the largest it has had since 4QFY17 with a net loss of RM96.03 million then.

Loss per share expanded to 8.65 sen, from 0.61 sen.

“The general prohibition of mass movement and the implementation of various health measures to curb the spread of Covid-19 have affected the footfall of our retail stores, resulting in negative same-store sales growth across the group's retailing regions,” said Parkson in a filing with Bursa Malaysia yesterday. 

This resulted in its retail operations suffering an operating loss of RM46 million for 1QFY20. Quarterly revenue slid 36.46% to RM698.94 million, from RM1.1 billion.

For the cumulative nine months ended March 31, 2020 (9MFY20), net loss widened to RM218.03 million, from RM87.06 million last year, while revenue was down 16.39% to RM2.57 billion, from RM3.08 billion.

The group's retail division achieved a lower revenue of RM2.54 billion, with a lower operating profit of RM59 million, for 9MFY20.

“Without the impact of MFRS 16 (Malaysian Financial Reporting Standard 16), an operating loss of RM47 million would have been recorded for the current financial year-to-date [period],” Parkson added.

As at March 31, 2020, the group's retail division had a total network of 103 stores, with 42 stores each in Malaysia and China, 15 in Indonesia and four in Vietnam.

On its prospects, Parkson expects its operating environment to remain challenging amid competition and the Covid-19 pandemic.

“Moving forward, the performance of the group will depend on business revival and consumer sentiment in the group's retailing regions. The group continues to exercise caution in managing its overall business given various uncertainties at the macro level,” said Parkson.

Shares in Parkson closed unchanged at 10 sen yesterday, giving it a market capitalisation of RM109.3 million. The Main Market-listed counter has been gradually falling over the years. Its share price has plunged some 95% since five years ago at RM2.02 then.

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