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Epicentre posts S$2.87m net loss for full year

Epicentre Holdings, a retailer of Apple brand products, has posted S$2.868 million net loss for the year ended June 30, 2015, a tad lower than the S$2.895 million net loss it posted in the previous year.

Revenue rose 3.6 per cent to S$178.50 million, largely contributed by the launch of iPhones 6 in H1 2015, as well as the group's strategy to focus on improving sales in existing markets. "The group maintained its sales growth although partially offset by the increase in price competition, closure of retail stores, downtime due to renovation of stores and generally poor retail sentiments," Epicentre said in its results statement released over the weekend.

Despite the growth in revenue, gross profit fell by S$315,000 to $16.77 million from $17.08 million, caused by the decline in gross profit margin to 9.4 per cent in FY2015 from 9.9 per cent in FY2014.

Epicentre also revealed that in FY2015, sales mix for Apple products and the third party products was 90 per cent and 10 per cent, respectively - same as the previous year.

However, the margin from the sale of third party products was lower in FY2015 compared with a year ago. "The aggressive bundling and promotions that was undertaken by the group during FY2015 also contributed to the decrease of the overall gross profit margin," Epicentre added.

The operating environment in the next 12 months is expected to remain challenging, the group said. It remains focused to widen its distribution network in existing markets. It will also continue to enhance its operational efficiency and monitor its operating expenses in the face of economic uncertainties and rising staff cost and premises expense. "The Group is also exploring various options to diversify and broaden its revenue base."

Loss per share dipped to 3.07 cents in FY2015 from 3.10 cents in FY2014.

No dividend has been declared for FY2015, just like the previous year.