A decline in sales in Malaysia and Myanmar is blamed for a 71.6 per cent drop in second-quarter earnings for Parkson Retail Asia.
The company says it is diversifying into fashion, edutainment and supermarkets in a bid to restore sales growth and profits.
Its earnings slumped to S$2.9 million (US$2 million), while its revenue dropped 12 per cent to $103.5 million, reports The Business Times.
However, the company’s net profit for the six-month period jumped to S$52.36 million, boosted by a gain on partial divestment, while revenue was down 13.8 per cent to S$196.14 million.
“To meet the challenging environment, the group has invested in new businesses,” says the company.
“This encompasses investments in private-label and agency-line apparels, edutainment and supermarket.”
Together with a program of store openings, these new businesses are expected to impact the group’s working capital in the short term, but will be a platform for future profitability.