Parkson reports sharp drop for Q2 FY16 bottom line

PARKSON Retail Asia's Q2 FY16 profit slumped nearly 72 per cent year on year to S$2.9 million, in line with weaker sales by its operations in Malaysia and initial losses from new stores.

Revenue declined 12 per cent to S$103.45 million, dragged down by softer sales in Myanmar and Malaysia.

Earnings per share came to 0.43 Singapore cent, down from 1.51 Singapore cents in the corresponding quarter a year earlier.

Net profit for the six month period jumped up to S$52.36 million, boosted by a gain on partial divestment, while revenue was down 13.8 per cent to S$196.14 million.

"To meet the challenging environment, the group has invested in new businesses. This encompasses investments in private label and agency line apparels, edutainment and supermarket, among others," Parkson Retail Asia said. "These new businesses together with the group's new stores opening programme will impact the group's working capital in the short term but will be the platform to build on future profitability."

No dividend was proposed this time, compared to a dividend of four Singapore cents in the corresponding period last year.