KUALA LUMPUR: Senheng New Retail Bhd's net profit decreased 26.2 per cent to RM12.06 million in the first quarter (Q1) ended March 31, 2022 from the RM12.06 million recorded in the same quarter last year.
In a statement today, the consumer electrical and electronics retailer said the lower net profit recorded for the quarter was due to higher operating and administrative expenses, which included expenses for listing on the main market of Bursa Malaysia.
Revenue in the same quarter eased 1.9 per cent to RM367.31 million from RM374.56 million.
Despite the discouraging set of financial result, Senheng remained optimistic of better performance in the current financial year ending December 31, 2022 (FY22), to be driven by new store launches and higher per-store sales.
Executive chairman Lim Kim Heng said with Malaysia's consumer retail spending expected to improve as the country adapts to Covid-19 endemicity, the company is poised to benefit significantly in the year ahead.
"Our latest expansions involve 21 new and upgraded stores in 2022 will bring enhanced shopping experience across our retail stores nationwide, and generate higher revenue for each store.
"Additionally, our fully-digital marketing efforts allow us to achieve better engagement with customers.
"We employ latest technologies to obtain greater insights in consumer preferences and provide personalised experiences to a growing loyalty base of more than three million PlusOne members, which ultimately drives more sales to our online and physical stores," he said.
Senheng's expectations of higher store revenue and stronger performance in 2022 will be supported by the increasing number of larger and upgraded stores nationwide.
Its latest store formats such as Grand Senheng, Grand Senheng Elite, and Grand senQ, register on average 30-50 per cent higher per-store sales compared to typical Senheng stores.
The launches are part of the company's upgrade and expansion program from 2022 to 2024 comprising a total of 61 new/upgraded stores nationwide.
In the longer term, the company said it aims to transform its existing stores into Territory Champions – leading stores by floor space and product range within a five-kilometre radius.