Parkson Retail Asia’s net profit jumps 28% to S$27m in 1H12

The surge in profit was largely driven by the group’s opening of new stores and the inclusion of its operations in Indonesia.

According to a financial statement, Parkson Retail Asia Limited’s net profit attributable to the owners of the Company for the six months ended 30 December 2012 rose 27.5% to S$26.9 million, from S$21.1 million in the corresponding period of the previous financial year.

The department store operator, with operations in Malaysia, Vietnam and Indonesia, experienced strong revenue growth of 22.5% to S$227.0 million in 1HFY2012 as compared to S$185.4 million in 1HFY2011, largely driven by the strong growth in same-store sales, improved sales productivity from existing stores, the opening of new stores and the inclusion of the operations in Indonesia, acquired in June 2011.

The Group’s total gross sales proceeds in 1HFY2012 increased 24.9% to S$552.4 million, from S$442.3 million in the previous year. Total merchandise sales in 1HFY2012 rose 25.1% to S$546.7 million from S$437.1 million in 1HFY2011. Concessionaire sales continue to be the main contributor to merchandise sales, accounting for 79.1% of the Group’s total merchandise sales for the current period. The remaining 20.9% was derived from direct sales.

The Group’s 1HFY2012 total operating expenses rose in tandem with the increase in revenue, by 20.8% to S$192.4 million from S$159.2 million in 1HFY2011. This was mainly attributed to the new store openings and the impact of including the additional business operations in Indonesia.

Accordingly, Parkson recorded a 29.0% increase in its net profit in 1HFY2012, to S$27.0 million from S$21.0 million in 1HFY2011.

Earnings per ordinary share, based on the weighted average number of 623,822,000 shares, was S$0.043, in 1HFY2012, while net asset value per share as at 31 December 2011 stood at S$0.33.