Mynews sees better performance in 4Q on improved sales

KUALA LUMPUR (Dec 22): Mynews Holdings Bhd reported a net profit of RM1.37 million for its fourth quarter ended Oct 31, 2022 (4QFY2022), compared to a net loss of RM9.03 million a year earlier, mainly contributed by an improvement in sales mix and higher margin of the CU convenience store business.

The comes against the backdrop of the expected gestation period of new CU business, and the opening of more than 100 new stores that has crimped the bottom line, the group said in a bourse filing.

The increase in retail sales positively benefited the food processing centres (FPC)’s performance, which resulted in a reduction of the loss to RM1.72 million from RM3.47 million.

Mynews said the jointly controlled entity, WH Smith, brought in a share of profit of RM500,000 compared with RM60,000 in 4QFY2021. The improvement was due to the opening of international borders and lifting of travel restrictions beginning from April.

Mynews said total revenue increased 84.53% to RM180.6 million from RM97.87 million a year earlier, thanks to new outlets, longer business hours as well as an improvement in overall in-store sales.

For FY2022 as a whole, the group's net loss narrowed by 57.95% to RM18.17 million from RM43.21 million in FY2021, despite revenue improving to RM631.33 million from RM394.37 million.

The group said the full-year revenue was affected by a decrease in other income source, including the government’s wage subsidy programme worth RM2.8 million in FY2021 that was no longer provided, but it was offset by the government’s hiring incentive programme along with its fair value gain on investment property.

“The continuing improvement in sales at the retail front is helping to elevate the demand for ready-to-eat food and thus the increase in production volume of the FPC,” said Mynews.

“The past problem of acute labour shortage in the FPC was resolved during the current quarter and we are looking forward to increase the production volume gradually as the new line workers are being trained.

“Barring any unforeseen circumstances, we anticipate a continuing improvement in the overall group performance that will be brought about by reasons mentioned above,” the group added.

Mynews' share price closed 3.5 sen or 5.22% lower at 64 sen, giving the group a market capitalisation of RM433.17 million.