Caring's 3Q net profit, revenue rise with more outlets

by **Cals** Wed 29 Apr 2015, 01:29

Caring's 3Q net profit, revenue rise with more outlets

KUALA LUMPUR (Apr 28): Caring Pharmacy Group Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) registered a 14.7% improvement in its net profit for the third quarter ended Feb 28, 2015 (3Q15) to RM7.6 million, from RM6.62 million in the corresponding period last year, on higher revenue and consistent gross profit margin.
Caring’s basic earnings per share (EPS) for the quarter was higher at 3.49 sen, as compared to 3.04 sen last year.
Revenue for the quarter under review also expanded 14.5% to RM93.89 million, from RM81.97 million a year ago.
Based on a filing with Bursa Malaysia, Caring said the higher revenue was mainly contributed by the seven outlets that commenced operations in the fourth quarter of financial year ended May 31, 2014 (FY14), and seven new outlets which were opened in 3Q15.
Existing outlets also saw revenue growth.
“The increase in profit before tax for the current quarter, compared to the corresponding quarter in the preceding year, is mainly contributed by higher revenue achieved, coupled with the relatively consistent gross profit margin,” added Caring.
For the cumulative nine-month period however, Caring’s net profit declined 26% year-on-year to RM10.24 million, from RM13.84 million.
EPS for the cumulative period contracted 26% from 6.36 sen to 4.7 sen.
The decline in earnings was despite revenue rising 8.6% to RM271.69 million, from RM249.69 million.
On the group’s prospects going forward, Caring said it expects the remaining quarter for FY2015 to be “challenging”, due to stiff market competition and the implementation of the goods and services tax (GST).
“However, the group is cautiously optimistic that with its established presence, competitive strength and marketing strategies, the group will continue to perform profitably in the next quarter,” it said.
Caring’s share price closed unchanged at RM1.20 today, giving it a market capitalisation of RM261.25 million.