Mynews 4Q profit up 14.81%; group optimistic of fast food biz prospects

TheEdge Fri, Dec 14, 2018 08:23pm - 5 years View Original


KUALA LUMPUR (Dec 14): Mynews Holdings Bhd's net profit jumped 14.81% to RM6.07 million for its fourth quarter ended Oct 31, 2018, from RM5.29 million a year ago, on the back of higher revenue.

Earnings per share, however, fell to 0.89 sen from 1.7 sen following a private placement exercise which took place in October last year.

No dividend was declared for the quarter, according to the group's bourse filing today.

Quarterly revenue rose 20.95% to RM109.34 million, from RM90.4 million in the same quarter last year.

"The improved revenue was principally contributed by the increase in the number of outlets, continuous efforts to improve the product offerings and aggressive marketing promotions," said Mynews.

Outlet count increased to 436 as at the end of the quarter, compared with 356 a year ago, it said.

In tandem with the higher number of outlets and business volume, operating expenses increased 33.3% to RM31.44 million, compared with RM23.59 million in the preceding year's corresponding quarter, it added.

Included in the operating expenses is RM0.77 million incurred for the temporary ready-to-eat (RTE) food production facility and its food development and research initiatives.

For the full financial year, net profit rose 10.34% to RM26.5 million, from RM24.02 million a year earlier.

This was on the back of a 19.51% increase in full-year revenue to RM391.53 million from RM327.6 million previously.

"Operating expenses were at RM111.74 million, an increase of RM25.97 million or 30.3% compared to 2017 of RM85.77 million," it said.

"The increase comprised principally the higher outlet costs due to more outlets and increased business volume, head office operating costs comprising staff costs and expenditure in preparation for the upcoming new range of products offering as well as the launching of new in-house brand 'Maru Kafe' and the expenses incurred for the temporary RTE food production facility and its food development and research initiatives," it added.

On prospects, Mynews said it is "optimistic" of its business growth and sustainability, underpinned by the vast potentials that could be reaped from its RTE food processing centre.

The centre is due for completion by the first half of 2019, it said.

"As a prelude, Mynews has launched its Maru Kafe brand concept and at the same time is introducing more food offerings.

"It is also enhancing its operational infrastructure to support its growth and transformation programs," it added.

Mynews shares traded unchanged to close at RM1.45 today, giving the retailer a market capitalisation of RM989.12 million.

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