Mynews Is Looking For A Rebound Following A Record Quarterly Loss

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MyNews Holdings Bhd reported another quarterly loss of RM14.92 million for the third quarter ended July 31, 2021 (3QFY21) due to disappointing retail performance, which also pulled down its food manufacturing segment.

This is the convenience store operator’s sixth consecutive quarterly loss and its largest quarterly loss to date, following a loss of RM10.32 million in 2QFY21.

“In summary, MyNews’ third-quarter 2021 performance was impacted mostly by the ongoing Covid-19 pandemic and a lengthy period of harsh movement restriction orders,” the company stated.

The group’s jointly-controlled British store WH Smith was also in the red, the group added, as the travel industry remains constrained.

The net loss of 2.19 sen per share compares to a loss of RM6.09 million or 0.89 sen per share in 3QFY21.

Revenue was RM93.89 million, down 14.72 percent from RM110.1 million in the preceding quarter.

While gross profit margin increased marginally to 29.9 percent from 29.5 percent, development of new CU locations in South Korea was delayed during the movement control order, and the group suffered a 16 percent decrease in MyNews locations year over year.

MyNews’ 3QFY21 net loss increased to RM34.18 million or 5.01 sen per share in the nine months ended July, up from RM4.07 million or 0.6 sen per share a year earlier.

Revenue for the first nine months declined 20.76 percent to RM296.5 million from RM374.16 million the previous year.

MyNews expressed optimism for a steady recovery following the pandemic, as the country strives toward normalcy under the National Recovery Plan.

This is contingent upon efforts to grow omni-channel retail by cooperating with partners to deliver everyday products and fresh foods directly to customers’ doorsteps, creating myNEWS SUPERVALUE to suit the demand of new norm consumers, and acquiring the CU brand.

On Monday, MyNews’ shares increased 2.5 sen, or 2.84 percent, to 90.5 sen, valuing the group at RM617.35 million.

Published by Zack Baharum

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