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Parkson Retail Asia posts Q3 loss of S$7.8m

DEPARTMENT store operator Parkson Retail Asia posted a third-quarter net loss of S$7.8 million, narrowing its net loss by 14 per cent from S$9.1 million a year ago. 

This translated to a loss per share of 1.16 Singapore cents, versus a loss of 1.35 Singapore cents last year. 

No dividend was declared for the current financial period, unchanged from the preceding year. 

Revenue for the quarter rose 5.9 per cent to S$104.5 million, though expenses also ticked up by 3.7 per cent to S$113.6 million for Q3 FY2018. The increase in expenses was mainly due to changes in merchandise inventories and consumables, as well as higher staff costs and annual salary adjustments.

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As at March 31 this year, the group has net current liabilities of S$80.3 million, as a result of the firm's investments in new stores and new ventures.

The group's operations in Malaysia was the most profitable segment, with same store sales growth of 4.5 per cent recorded for Q3 FY2018, amid stronger Chinese New Year festive sales. 

While the group added three new stores to its department store network for the nine months ended March 31, it has also taken steps to retire six underperforming stores against the backdrop of competitive operating environments.

Looking ahead, the group's performance in the final quarter especially for Malaysia and Indonesia operations is expected to benefit from the Hari Raya and Lebaran festive shopping in June 2018, Parkson Retail Asia said. 

Nonetheless, "in view of the headwinds encountered in each operating country, the group is expected to end FY2018 with reduced losses as compared with FY2017". 

"We will continue to drive top-line growth proactively, whilst exercising prudence on operating costs and new investments," the group added. 

The counter last traded 1.8 per cent, or 0.1 Singapore cent lower to 5.4 Singapore cents apiece on Monday, before its Q3 results were announced on Tuesday.