MyNews 1QFY24 net profit of RM1.3 mln within expectations
KUCHING: MyNews Holdings Bhd (MyNews) has posted a first quarter of financial year 2024 (1QFY24) net profit of RM1.3 million that met the expectations of the research arm of Maybank Investment Bank Bhd (Maybank Research).
According to Maybank Research, the group’s 1QFY24 net profit of RM1.3 million had made up 26 per cent of their fullyear earnings estimates of RM5 million.
For the period under review, the research arm noted that MyNew’s CU stores and Food Processing Centre (FPC) had finally begun reaching break-even levels, allowing for sustainable positive groups earnings growth moving forward.
For 1QFY24, the group’s revenue had increased by 6 per cent year on year (y-o-y) to RM195.5 million due to better sales volume and store traffic which’d rove average sales per store upwards.
The research arm noted that this growing average sales per store signals improved consumer appeal towards MyNews store.
“Gross profit margin also lifted by +3 percentage points (ppt) y-o-y on the back of improved sales mix and better margin contribution from its CU stores,” the research arm added.
Additionally, the group’s FPC also posted narrower losses of RM0.2 million during the quarter.
This was a huge improvement compared to losses of RM1.8 million registered in 4QFY23.
This was however offset slightly as the group’s selling, general and administrative (SG&A) expenses also grew by 6 per cent y-o-y to RM46.8 million.
The group’s 1QFY24 net profit of RM1.3 million was a 33.6 per cent quarter on quarter improvement from the RM0.9 million n 4QFY23.
Looking ahead, Maybank research who maintains a ‘Buy’ call on MyNews reiterated that they believe the group’s outlook remains positive.
“We believe that measures to align its fresh food product offering to current consumer preferences have begun to bear fruit, which will continue to drive sales momentum going forward.
“Expectations for its CU stores and FPC to break-even in FY24 will also support its positive earnings trajectory,” they shared.
As at end-1QFY24, MyNews has a total of 619 stores across Malaysia, 468 MyNews & SuperValue stores, 132 CU stores, and 19 WHSmith stores.
The group’s store opening target for FY24 is 100 net new store per annum.