KUALA LUMPUR (Nov 20): Lingerie and baby apparel retailer Asia Brands Bhd reported a second quarter net profit of RM5.35 million, over four times the RM1.32 million it reported a year ago, as it saw lower operating expenses, as well as lower finance costs during the quarter.

Revenue for the three months ended Sept 30, 2020 (2QFY21) grew 9% year-on-year to RM49.23 million from RM45.02 million, Asia Brands' stock exchange filing today showed.

The company said the lower finance costs recorded was a result of having paid down its borrowings during the Movement Control Order (MCO) period.

The stronger 2QFY21 earnings lifted its cumulative net profit for the six months ended Sept 30 to RM9.58 million, up 62% from RM5.91 million in the corresponding six months last year, even as revenue sank 15% to RM83.93 million from RM98.79 million.

On prospects, Asia Brands, which sells baby products under the Anakku brand, said it is continuing to adhere to its plans to keep employees and customers healthy and safe amid the ongoing pandemic, as well as ensuring continued operations and business continuity.

“Our business so far has remained resilient, despite the impact of the MCO/RMCO (Movement Control Order/Recovery MCO). We have also benefitted from the stimulus packages offered by the Malaysian government, which had helped us in managing our expenses.

"Moving forward, we will remain cautiously optimistic of a recovery in our financial year, as the market becomes more challenging after the loan moratorium ends and the imposition of CMCO (conditional MCO),” it added.

Shares in Asia Brands finished 22.50% or nine sen higher at 49 sen today, valuing it at RM114 million. It saw 207,500 shares traded.