KUALA LUMPUR (Nov 29): Padini Holdings Bhd recorded a net profit of RM48.86 million for the first quarter ended Sept 30, 2022 (1QFY2023), versus a net loss of RM16.86 million a year ago, as all its outlets were operating at full capacity.

Padini's business was affected by the enforcement of the Full Movement Control Order between June 1 and Aug 18, 2021.

The group posted earnings per share of 7.43 sen for the quarter, compared with a loss per share of 2.56 sen previously.

Quarterly revenue surged 365.8% year-on-year to RM379 million from RM81.38, according to the home-grown fashion retailer's filing with Bursa Malaysia.

The group declared a dividend of 2.5 sen per share, to be payable on Dec 30.

Padini said retail business in general remains challenging due to the deterioration in consumer sentiment and purchasing power arising from the slower global economy, trade tensions and rising inflation and interest rates.

"However, supply chain issues, increase in material costs, freight, labour and interest rates seem to be on an easing trend although there may still be some further increases in the short term," it said.

The group said it is cautiously optimistic of performing satisfactorily for the current financial year, barring any significant deterioration in consumer sentiment or major outbreaks due to evolving Covid-19 variants.

"Management will continue to provide value-for-money products and implement measures to control costs, optimise working capital, preserve cash and streamline the operations to minimise any adverse impacts," Padini added.

Padini's share price closed one sen or 0.3% lower at RM3.34 on Tuesday (Nov 29), valuing the group at RM2.2 billion. Year-to-date, the counter has risen 53 sen or 18.86% from RM2.81.