Parkson Retail Asia swings into the red with $12m losses in 4QFY16

Mixed results of foreign stores did not prevent losses.

Department store operator Parkson Retail Asia declared a net loss of $12 million in 4QFY16 ended 30 June 2016. It was 20% short of bringing an upswing coming from a net loss of $59.8 million in the previous corresponding period.

Parkson Retail Asia’s unaudited statement on SGX showed mixed quarterly same store sales growth (SSSG) of its foreign operations with Myanmar being the worst performer at -25.0% in 4QFY16, followed by Vietnam at -4.1%. Sales in Myanmar have been impacted by the impending closure and redevelopment of FMI Centre, where the group’s store is located.

Malaysia operations SSSG improved 21.5% as against a decline of 17.0% in 4QFY15, while Indonesia was consistently delivering positive figures, 7.3% in 4QFY16 and 12.0 in the previous corresponding quarter.

On back of partial disposal of its equity interest in its subsidiary-turned-associate company, Parkson Hanoi Co Ltd, group’s YoY results revealed a net profit of $33.1 million in FY16, a recovery from its $34.7 million losses in FY15.