InNature’s Q4 profit more than halves
Main Market-bound retail group says sharp fall due to losses from its new business, additional operating costs and lower operating income
PETALING JAYA: InNature Bhd, which is scheduled to be listed on the Main Market of Bursa Malaysia tomorrow, saw its net profit for the fourth quarter ended Dec 31, 2019 fall 60% to RM7.91 million from RM19.77 million a year ago.
This was mainly due to losses from new business of RM1.2 million, additional operating costs and lower other operating income in Malaysia.
InNature, which is principally involved in the retailing and distribution of The Body Shop products, also noted that the group’s operating environment has been clouded over the outbreak of Covid-19.
“Having been in the business for the past 35 years, such negative event is not new to us, and despite some foreseen challenges in Q1’2020, we will continue to manage our business with vigilance during this period of uncertainty,“InNature said in a stock exchange filing when announcing its financial results. The group’s revenue increased 2.6% to RM53.49 million compared with RM52.15 million, lifted mainly by Vietnam’s revenue growth as well as contribution from new business.
InNature has proposed to declare a dividend of 1 sen a share.
For the full year, InNature’s net profit fell 33.92% to RM30.15 million from RM45.63 million in the preceding year, dragged down by non-core items such as listing-related expenses in the current financial year, and fair value gain arising from distribution of non-cash assets to owners in FY18.
Its revenue expanded 3.91% to RM191.68 million from RM184.47 million last year.
InNature said it will continue to invest in the business according to the IPO proceeds utilisation plan in the new financial year ending Dec 31, 2020 (FY2020). It is expected to see overall continuous revenue growth and remain profitable in FY2020.
InNature is looking to raise RM120.6 million from its initial public offering, split between gross proceeds of RM50.4 million from the public issue and RM70.2 million from the offer for sale.