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Tag: FMI Centre

  • Parkson Retail Asia 1Q Net Loss Widens On Year As Sales Decline

    Parkson Retail Asia 1Q Net Loss Widens On Year As Sales Decline

    Parkson Retail Asia has had a lacklustre start to its fiscal year, its unaudited first-quarter figures show.

    Gross sales proceeds fell by 8.3 per cent year on year to S$202.4 million (US$148.9 million) for the quarter.

    Total merchandise sales generated $198.1 million, with concessionaire sales contributing 74.2 per cent, down from 77.9 per cent for the same period last year, and direct sales contributing the balance of 25.8 per cent.

    Attributable net losses to the owners of the company for the period, to September 30, reached $12.9 million. The group also had net current liabilities of $67.9 million at the end of September, the result of investments in new stores and ventures yet to reach optimal level. This was an increase of 22.5 per cent from its June 30 position.

    Same-store sales in Indonesia and Malaysia were impacted during the quarter by the absence of Lebaran/Hari Raya festival buying following a shift in the calendar.

    Malaysia remained challenging, with the country’s consumer sentiment index, at 77.1, continuing to register below the 100-point confidence threshold for the 13th consecutive quarter.

    Consumer spending appears to have also softened in Indonesia, where retail spending has been declining, while Parkson’s same-store sales in Vietnam dropped by 7.8 per cent. This is attributed to the “fading of novelty effects” arising from the entry into the market of such international players as H&M, Takashimaya and Zara.

    “Competition in Vietnam’s retail market remained intense,” says Parkson.

    In Myanmar, the group closed its store at FMI Centre, Yangon, in January with a new store at Junction Square in the city opening two months later.

    Parkson says its performance in the next quarter is expected to benefit from year-end school holidays and festive buying. However, it expects challenges with fragile consumer sentiment and stiff competition.

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  • From loss to profit for Parkson Retail Asia

    From loss to profit for Parkson Retail Asia

    Department store Parkson Retail Asia has managed a turnaround with profit before tax (PBT) of S$35 million (US$25.8 million) for the year ended June 30, compared to a pre-tax loss of $40.6 million the previous year.

    Profit was boosted by gain from a partial disposal of equity interest in Parkson Hanoi (PHCL) of $45.6 million. A subsidiary of the group, PHCL is now an associate company.

    On a same-store basis, PBT for the year fell by 46.9 per cent year-on-year to $17.4 million.

    For Malaysia, PBT declined by 28.9 per cent through negative same-store sales of -6.5 per cent and weak local currency; Vietnam had a pre-tax loss of $0.5 million with -2.9 per cent same-store sales; there was a pre-tax loss of $3.2 million in Indonesia; while Myanmar’s results were affected by uncertainty arising from redevelopment plans for the FMI Centre where the store is located.

    For the group’s fourth quarter, same-store sales grew 21.5 per cent in Malaysia, attributed to early festive buying arising from a shift in the Hari Raya calendar as well as the same quarter last year being hit by low sales following the introduction of the Goods & Services Tax.

    New concepts

    New concepts have been initiated, such as introducing Korean apparel, affordable private labels, and specialty shoe stores.

    “We have been consolidating our department store space by identifying non-performing stores with the view to closure upon tenancy expiry,” says Parkson.

    In Myanmar, the group had a 25 per cent decline in same-store sales, affected by plans to close the FMI Centre, while Vietnam had a 4.1 per cent decline for the quarter, with the discretionary retail environment difficult amid an increasingly crowded retail scene.

    Indonesia was more positive with 7.3 per cent growth in same-store sales, mainly because of early festive buying as a result of a shift in the Lebaran calendar.

    Overall, gross sales proceeds (GSP) and revenue for the quarter grew by 9.8 per cent and 10.9 per cent respectively to $232.1 million and $93.9 million. However, GSP and revenue declined by 10.2 and 9.4 per cent respectively to $967.7 million and $388.4 million.

    The group’s pre-tax loss for the quarter was $13.4 million. Contributing factors included impairment on fixed assets for two loss-making stores of $5.4 million, impairment on prepaid rental and rental deposit of $3.3 million, provision on deposit for a managed store in Ho Chi Minh City of $2.2 million, and the initial loss-making periods associated with new stores and businesses.

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  • Parkson revenue falls

    Parkson revenue falls

    Despite contributions from new outlets, Parkson Retail Asia’s department stores have seen third-quarter group revenue fall by 15.6 per cent to S$98.4 million (US$71.5 million), with a 14.4 per cent drop to S$294.6 million for the nine months of its current financial year.

    The Parkson revenue decline reflects same-store revenues falling in Malaysia and Vietnam, plus the weakness of the Malaysian ringgit resulting in lower figures because of the reporting currency being Singapore dollars.

    A pre-tax loss of $7.5 million was recorded by the group for the third quarter, with factors including provision made on loans to managed stores of $4.9 million, and initial losses associated with new stores.

    Same-store sales growth in Malaysia fell 17.4 per cent in the third quarter, but figures for the corresponding quarter last year were bolstered by sales before the introduction of a Goods & Services Tax (GST) on April 1 2015. Also, consumer confidence was below the 100-point threshold for the seventh consecutive year, as reported by the Malaysian Institute of Economic Research.

    Vietnam same-store sales fell 8.2 per cent for the quarter, with a difficult and increasingly crowded retail environment, the company said. For the nine months, a pre-tax loss of $4.9 million has been recorded.

    Sales were flat in Indonesia, edging up just 0.1 per cent. However, the company says consumer sentiment is robust with Bank Indonesia reporting the consumer confidence threshold at 111.1 points, a little down on the 119.1 points at the same time last year. For the nine months, a $3.2 million pre-tax loss was recorded.

    In Myanmar, Parkson same-store sales fell 7.6 per cent, affected by supplier uncertainty about plans to close the FMI Centre, where the store is located, for re-development. However, a new location has been secured, with the new store expected to open by March.