Parkson Retail Asia swings to 1Q22 net profit

Parkson Retail Asia department store in Johor Bahru, MalaysiaParkson Retail Asia department store in Johor Bahru, Malaysia

Parkson Retail Asia swung to a first quarter net profit of S$4.23 million from a year-earlier net loss of S$50.73 million as all stores were operational during the quarter.

Revenue for the January-to-March quarter grew 22.1 percent on-year to S$51.22 million from S$41.93 million in the year-ago period, the department store operator said in a filing to SGX.

Merchandise sales climbed 35.9 percent on-year to S$135.23 million, mainly on higher sales in Malaysia on a gradual recovery from the Covid pandemic, compared with year-earlier restrictions.

“The Covid-19 pandemic continues to impact negatively (in a different degree in the regions where the group operates) on the group’s financial performance/cash flows for the quarter,” Parkson Retail Asia said.

“Nevertheless, the group has taken proactive steps, amongst others, to reduce costs including salary reduction and negotiation with landlords for rent waiver/reduction,” the company said.

Parkson Retail Asia said it is “cordially discussing” with suppliers for continued trading with the company’s stores and is negotiating on payment plans and arrangements.

As of end-March, the group had 39 department stores, down from 43 at end-March 2021, not including Indonesian stores, the filing said.

Earlier this year, the department store operator’s auditors cited a material uncertainty on whether the company can continue as a going concern due to the significant impact from Covid-related restrictions, including store closures and movement restrictions.