For the current quarter, Senheng New Retail Berhad noted a marginal revenue decline of 1.9% to RM367.3 million versus the previous quarter (1Q21).
Meanwhile, group net profit decreased 26.2% to RM8.9 million in 1Q22, as a result of higher operating and administrative expenses, which included listing expenses for the Group’s flotation exercise on the Main Market of Bursa Malaysia. The increased costs also reflect the Group’s ongoing expansion strategies both in its retail network and technology implementations.
Group Executive Chairman Mr Lim Kim Heng commenting on the performance said “Malaysia’s consumer retail spending expected to improve as the country adapts to Covid-19 endemicity, we are poised to benefit significantly in the year ahead. Our latest expansions involving 21 new/upgraded stores in 2022 will bring enhanced shopping experience across our retail stores nationwide, and generate higher revenue for each store.”
The Group’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% higher per-store sales compared to typical Senheng stores.
The launches are part of the Group’s upgrade and expansion program from 2022 to 2024 comprising a total of 61 new/upgraded stores nationwide. In the longer term, the Group aims to transform its existing stores into Territory Champions – leading stores by floor space and product range within a five-kilometre radius.
