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KUALA LUMPUR: MyNews Holdings Bhd posted a net loss of RM10.22mil in the second quarter ended April 30, against a net loss of RM10.32mil in the same period last year.
The convenience retail chain operator’s revenue for the quarter rose 35.7% to RM141.1mil from RM103.94mil achieved in the same quarter a year prior.
The improved revenue was contributed by the growth in the number of outlets and increase in footfall upon relaxation of the full lockdown by the government.
Its number of outlets increased to 556 from 519 in the second quarter.
Mynews, in the notes accompanying its financial results, said was an increase in administration expenses from RM7.81mil to RM8.97mil.
“This was attributed to the continual addition of new talents, and cost of marketing materials to promote the new retail brands, new products and the 66 new CU stores launched over the most recent two quarters,” it said.
In addition, selling and distribution expenses increased from RM20.76mil to RM30.26mil, mainly due to the increase in the number of CU outlets and longer operating hours brought about by the lifting of full lockdown.
Meanwhile, other expenses rose 26.5% from RM13.95mil to RM17.65mil, due to the increase in depreciation of property, plant and equipment of RM1.57mil, depreciation of right-of-use assets of RM1.03mil and property, plant and equipment written off of RM940,000.
In the first six months to April 30, Mynews posted a lower net loss of RM18.1mil against RM19.26mil a year earlier, while revenue jumped 38.5% to RM280.53mil from RM202.62mil a year ago.
Mynews said since the opening of the first CU outlet on April 1, 2021 to date, the group managed to launch 95 CU outlets while traversing through the difficult pandemic time.
The current number of myNEWS outlets stood at 463 and it is growing as new ones are built to gradually regain the number that was scrapped during the pandemic.
“With the anticipated improvement in business performance contributed by the increasing number of outlets and post-pandemic customers footfall, along with the better utilisation of the food processing centre (FPC), the rejuvenated WH Smith stores business brought about by the reopening of international borders and the improvement in gross margin, we are hopeful of a turnaround in the financial performance in the near future, barring any unforeseen circumstances,” it said.
Mynews said although its consecutive quarterly earnings since the beginning of the pandemic have been affected by the challenging situation, the group continued to expand its operations.
“We are hopeful that the current uneven recovery of the different components of our business will be mitigated by our increasing effort to reduce costs and wastages as well as to shorten the gestation period of the CU business.