Listed department store operator Parkson Retail Asia has reported a 5.5 per cent year-on-year increase in net profit for the third quarter.

In the three months to March 31, Parkson posted a profit of S$7.98 million.

The company attributed the improvement to increased sales in its Malaysia department stores where consumers were buying goods in advance of the introduction of GST on April 1.

The improvement came despite a reduction in same store sales from the company’s Vietnam operations, which continue to struggle and now faces increased competition from the arrival of M&S and the Thailand Central Group’s Robins department stores in the key Ho Chi Minh City and Hanoi markets.

Sales in the Indonesia and Myanmar stores both improved.

Total sales revenue for the group rose 9.2 per cent to S$116.58 million.

CEO Toh Peng Koon said the company expects a decline in Malaysia sales following the GST implementation, but expects that will be buffered by the start of the pre-Hari Raya festive buying season towards the end of June.

He said he expects Indonesia and Myanmar to conitnue to deliver encouraging results, but warned Vietnam remained a challenging market.