Parkson Announces Annual Results For The Financial Year Ended 30 June 2008

 



PARKSON HOLDINGS BERHAD (89194–P)
(Incorporated in Malaysia)
(Stock Code: 5657)

Solid Performance and Positive Outlook

Financial Highlights

For the year ended 30 June December
2008
(RM’000)
2007
(RM’000)

Change
Total gross sales proceeds 6,645,148 5,136,685 29.4%
Revenue 2,246,855 1,794,136 25.2%
Profit from operations 575,722 412,091 39.7%
Net profit for the year 635,936 276,737 129.8%
Net profit attributable to the Group 445,752 134,870 230.5%
Basic earnings per share RM0.45 RM0.14 221.4%
Full year dividend per share RM0.15 Nil -

Kuala Lumpur, 27 August 2008 Parkson Holdings Berhad and its subsidiaries, jointly-controlled entities and associates (“Parkson” or the “Group”, stock code: 5657) announced its annual results for the year ended 30 June 2008.

Parkson achieved a growth in both total gross sales proceeds and revenue. Total gross sales proceeds rose 29.4% to RM6,645.1 million over the same period last year. In line with the growth of total gross sales proceeds, revenue also grew by 25.2% to RM2,246.9 million. Net profit attributable to the Group improved to RM445.8 million, an increase of 230.5% (including an exceptional gain of RM231.6 million). Basic earnings per share was RM0.45, registering a growth of 221.4% over the same period last year.

The Board of Directors recommended payment of a final dividend for the year ended 30 June 2008 of RM0.05 (2007: nil) in cash per share. Together with an interim dividend of RM0.05 per share and a special dividend of RM0.05 per share, the full year dividend amounts to RM0.15 in cash per share, representing approximately 33% of the year’s net profit attributable to the Group.


Business Review

Parkson executed its business plans and strategies to capitalize on the growing retail markets in the 3 countries it operates in (i.e. China, Malaysia and Vietnam) with satisfactory success despite having to face challenges brought on by the macro economic headwinds and the unfortunate events of natural disasters in China. The Group achieved its impressive growth in the financial year through its consistent same store sales growth and effective controls on the operating costs.

In line with the maturity of its stores profile, the Group continued to reinvent and remodel its stores to enhance its image and performance. The Group also made solid progress in rationalising its Group structure and consolidating its leadership position through opening new stores and M&A transactions at attractive valuation to its shareholders.

The Group now operates and manages a total of 77 department stores of which 40 are in China, 32 in Malaysia and 5 in Vietnam.


Prospects

Going forward, the Group believes that high inflation driven by the surge in food and commodity prices and the slowing demand from the main export markets will continue to post challenges to the healthy growth of the economy. However, it remains cautiously optimistic about the longer term prospects of the economies of China, Malaysia and Vietnam, and believes that domestic consumption in these countries will remain strong and that the retail industry will be one of the major beneficiaries of this development.

Parkson will continue to execute its expansion strategies to roll out more stores in the coming years and also actively explore the M&A opportunities and make acquisitions that meet its strategic initiatives and return on capital requirements.

Corporate Information

Parkson is one of the leading department store chains in China, Malaysia and Vietnam focusing on four major categories of merchandise: Fashion & Apparel, Cosmetics & Accessories, Household & Electrical, and Groceries & Perishables; targeting the middle to upper-middle income consumers. The Group’s Parkson retail business was established in Malaysia in 1987. Parkson was introduced to China’s retail market in 1994 and to Vietnam in 2005, thus making it one of the foreign pioneers in their respective department store industry.



For further information, please contact:

For Business Editor

Parkson Holdings Berhad – Corporate Communications Manager
Ms Quah Le Ching
Tel: (603) 2162 2155 Fax: (603) 2161 8409


For Investor/Analyst/Fund Manager

Parkson Holdings Berhad – Financial Officer
Ms Chong Lee Mei
Tel: (603) 3344 2882 Fax: (603) 3344 2889