KUALA LUMPUR (May 29): Padini Holdings Bhd saw its net profit rise 33% to RM43.38 million for the third financial quarter ended March 31, 2023 (3QFY2023), from RM32.62 million a year earlier, on higher revenue incurred during the quarter under review.

Earnings per share came in higher at 6.59 sen for 3QFY2023, compared with 4.96 sen a year ago.

The fashion retailer’s profitability was offset by a 44.64% surge in administrative expenses, which stood at RM30.72 million, compared with RM21.24 million previously.

It was also affected by higher selling and distribution costs, which increased by 40.87% to RM94.18 million in 3QFY2023, the group showed in a bourse filing. Tax expenses, meanwhile, increased 58.41% to RM14.68 million.

Quarterly revenue increased 38.8% to RM457.23 million, from RM329.34 million for 3QFY2022.

Padini also declared a fourth interim dividend of 2.5 sen per share and a special dividend of 1.5 sen per share for FY2023, payable on June 30.

The improved quarterly performance lifted Padini’s cumulative nine-month (9MFY2023) results, with its net profit more than doubling to RM165.39 million from RM76.64 million, as revenue expanded 60.6% to RM1.35 billion from RM837.90 million for 9MFY2022.

On its prospects, Padini said the retail business in general remains challenging due to the deterioration in purchasing power arising from the rising cost, trade tensions, and higher inflation and interest rates.

However, it noted that supply chain issues, material costs and freight charges seem to be on an easing trend, although there may still be further increases in the short term.

Padini shares closed four sen or 1.06% lower at RM3.75 on Monday (May 29), giving the group a market capitalisation of RM2.47 billion.