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 PADINI 7052 PADINI HOLDINGS BERHAD closes FY22 with record quarterly profit as sales surge

KUALA LUMPUR (Aug 26): Padini Holdings Bhd booked a fresh record high net profit of RM77.46 million for its fourth quarter ended June 30, 2022 (4QFY22), seven times more than the RM10.5 million it made in the same quarter a year earlier, as shoppers continued to flock to its stores in the aftermath of the pandemic.

Just two quarters earlier, the home grown fashion retailer announced that its net profit reached a record high of RM60.89 million in 2QFY22, boosted by the full reopening of the economy after the national Covid-19 vaccine roll-out last year.

“The increase was mainly due to the improvement in gross profit margin and higher sales generated as a result of the relaxing lockdown since Aug 15, 2021, and the progress of [the] vaccine roll-out, which have increased the footfall in shopping malls,” according to Padini's bourse filing.

It added that workforce right-sizing to optimise cost efficiency, together with wage subsidies received, also contributed to its stronger 4QFY22 earnings.

Earnings per share ballooned to 11.77 sen in 4QFY22, from 1.6 sen in 4QFY21. Quarterly revenue more than doubled to RM481.2 million, from RM209.84 million.

Compared to the preceding quarter of 3QFY22, Padini’s net profit surged 137.5% from RM32.62 million, as business operations normalise, while revenue expanded by 46.11% from RM329.34 million.

“This is due to the reinstatement of the Movement Control Order (MCO 3.0) during the previous year’s comparative quarter, with most outlets closed from June 1, 2021 onwards, which impacted top line sales. During the current quarter under review, all outlets were operating at full capacity,” it said.

The group declared a first interim dividend of 2.5 sen per share for FY23, to be paid on Sept 30. For the full FY22, Padini paid a 10 sen dividend in total, 7.5 sen more than the 2.5 sen it paid in FY21.

With the stellar 4QFY22, the group closed its FY22 with a near threefold jump in net profit to RM154.10 million, from RM54.06 million a year before, while revenue grew 28.14% to RM1.32 billion from RM1.03 billion.

The group is cautiously optimistic of maintaining its profitability in the upcoming financial year. “Management will continue to provide value for money products and implement measures to control costs, optimise working capital, preserve cash and streamline its operations to minimise the impact,” it added.

Shares in Padini closed unchanged at RM3.26 on Friday (Aug 26), giving the group a market capitalisation of RM2.15 billion.

http://www.theedgemarkets.com/article/padini-closes-fy22-record-quarterly-profit-sales-surge

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