Innature Posted Lower Earnings Impacted by Covid-19, Store Cllosures

KUALA LUMPUR: Innature Bhd’s net profit fell 33.06 per cent to RM7.72 million for the year ended December 31 2020 (FY20), compared with RM30.15 million in the previous year.

Group revenue also fell 18.9 per cent to RM 155.45 million from RM191.68 million last year.

In its filing with Bursa Malaysia today, Innature performance in FY20 was impacted by Covid-19, including the closure of all stores in Malaysia and Vietnam during the Movement Control Order (MCO) period.

“Our The Body Shop (TBS) operations in Malaysia and Vietnam recorded negative same-stores-sales growth (SSSG) of 23.9 per cent  and 9.1 per cent respectively for FY20.

“The impact of the pandemic was lesser in Vietnam and Cambodia, owing to the better-controlled Covid-19 situation in both countries.

As a result, we saw increasing Vietnam’s revenue contribution to the group from 15.5 per cent in FY19 to 20.1 per cent in FY20,” it said.

For the fourth quarter (Q4) net profit fell 44 per cent compared with RM7.91 million posted in the previous fourth quarter, while revenue declined 16.06 per cent from RM53.9 million.

On the group’s prospect, Innature said the reimposition of MCO in Malaysia subsequent to FY20 shows that the waves of Covid-19 will continue to be a key limiting factor of the group’s performance for the financial year ending 31 December 2021 (FY21).

The group will continue efforts in digitalisation and omnichannel initiatives, and aim to provide more convenience, faster access and better customer experience for everyone who comes into contact with us.

“For the group’s overseas operations where the pandemic is less virulent, we will continue to expand our store network judiciously in locations that we are not represented.

“Overall, we believe the group will remain resilient and profitable in FY21, and in doing so, we look forward to continuing with our dividend policy,” it added.

Source: https://www.nst.com.my/business/2021/02/668019/innature-posted-lower-earnings-impacted-covid-19-store-closures

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