KUALA LUMPUR (October 1): Clothing retailer Kamdar Group (M) Bhd aims to manage its online platform and digital environment as part of its business strategy as the country grapples with the Covid-pandemic 19.
In a commentary on its outlook in its financial statements for the quarter ended June 30, 2021, Kamdar said it will continue its efforts to implement proactive measures, including resource management as well as cash flow management and inventory to ensure cost optimization, planning and risk assessment. in order to resist the economic impact of Covid-19 on the group’s operating margin.
For the financial quarter ended June 30, 2021, Kamdar went back in the dark with a net profit of RM 234,000, compared to a net loss of RM 792,000 in the previous quarter. Revenue was RM 19.58 million, slightly higher than RM 19.46 million quarter on quarter.
In its Bursa Malaysia filing, Kamdar said there were no comparative figures disclosed for the current quarter and cumulative results since the start of the period following the change in year-end from March 31 to June 30. .
Kamdar attributed its slightly higher revenue from the previous quarter ended March 31, 2021 to “Hari Raya Aidilfitri’s robust seasonal festive sales.”
“However, the positive sales momentum was disrupted in May 2021 amid the nationwide movement control order (MCO 3.0) from May 12 to June 7, followed by a full-scale MCO (FMCO) from June 1 to 28, due to outbreaks of Covid-19 contaminations. Movement restrictions imposed via MCO 3.0 and FMCO had interrupted all business operations deemed non-essential, including the group’s business operations, causing ‘April 2021 the only productive month for the current quarter,’ he said.
Despite the marginal increase in revenue, Kamdar’s gross profit declined by RM 1.7 million or 21.8%, with gross profit margin plunging to 31.4% from 40.2% in the previous quarter.
This is what the group attributes to the promotional sales in conjunction with the Hari Raya Aidilfitri festivities and destocking. In addition, the group said that it also recorded impaired inventory in the current quarter, which resulted in an increase in the group’s pre-tax loss of 1 million ringgit from 400,000 ringgit in the previous quarter. .
“This goes hand in hand with a decrease in GP (gross profit) but partially offset by a fair value gain on investment property of RM 900,000 and other government wage subsidy program income of RM 700,000,” did he declare.
The group closed its Jalan Tuanku Abdul Rahman outlet in Kuala Lumpur on Thursday to consolidate the activity of two branches located in the immediate vicinity. The closed point of sale is located near the Kamdar headquarters on the same street.
He said the shutdown would reduce operating expenses and leave it to an outside party for better returns for the group.
This is the second branch closure of the group after the closure of its Puchong branch because its lease expired on July 31 and it was decided not to renew it. Meanwhile, Kamdar moved its branch from Kota Kinabalu to smaller land at 1 Borneo Hypermall, Jalan Sulaman.
Kamdar shares hit an annual high of 36 sen on May 12, falling back to the 26 sen level during the week. The action stood at 27 sen on Friday at the lunch break for a market cap of RM52.47 million.