Padini's 3Q profit rises 32%, declares 4 sen dividend

by **Cals** Thu 19 May 2016, 00:03

Padini's 3Q profit rises 32%, declares 4 sen dividend

By Billy Toh / theedgemarkets.com | May 18, 2016 : 8:22 PM MYT

KUALA LUMPUR (May 18): Padini Holdings Bhd saw its net profit for the third quarter ended March 31 (3QFY16) rise 32.1% to RM35.13 million from RM26.59 million a year ago, on the back of expanded revenues and smaller increase in operating expenses.

Earnings per share rose to 5.34 sen per share from 4.04 sen, the apparel retailer said in a filing to Bursa Malaysia today.

The higher profit was registered although the gross margins earned during the quarter fell 2.8% year-on-year after the ringgit's weakening against the yuan and US dollar in the second half of 2015 had driven up the cost of Padini's merchandise.

Padini said its revenue grew 20.71% to RM342.37 million from RM283.62 million in 3QFY15, mainly driven by strong growth from existing stores as well as revenues generated from new stores opened.

There was an addition of five Padini Concept Stores and eight Brands Outlet stores during the quarter, it said.

Padini declared a fourth interim dividend of 2.5 sen per share (single tier) and a special dividend of 1.5 sen per share (single tier). Both dividends will go ex on June 1 and are payable on June 29.

Meanwhile, for the nine-month period (9MFY16), Padini's net profit rose 61.22% to RM100.03 million, or 15.2 sen per share, from RM62.05 million, or 9.43 sen per share, in 9MFY15.

Revenue rose 25.97% to RM952.32 million from RM755.96 million.

The group said its performance for 9MFY16 was very positive despite the challenging economic environment.

"With only one more financial quarter to go and considering the bulk of the shopping for the Hari Raya festivities will occur in June, the last month of our financial year, we can quite safely predict that the 2016 financial year should see the group earning its highest profits thus far," it added.