MyNews Holdings Bhd reported a 32.9% decline in profit after tax to RM4.7 million for its third quarter, from RM7 million a year earlier, as higher operating costs and narrower margins offset revenue growth.
Quarterly revenue rose 9% to RM251.76 million from RM230.94 million in the corresponding period last year, driven by an expanded retail network and higher in-store sales.
The group increased its outlet count to 685 from 659 a year earlier, adding 26 stores.
However, gross profit margin narrowed to 37.5% from 38.1%, mainly due to changes in product mix and in-store sales promotions.
MyNews said administrative expenses increased 21.5% to RM10.87 million, largely reflecting continued investment in technology and IT talent to support its digital transformation.
Selling and distribution expenses rose 9% to RM50.86 million in line with the expansion of its retail network.
Other expenses climbed 17.6% to RM25.80 million, primarily due to higher depreciation from new capital expenditure and fixed-asset write-offs arising from the rationalisation of underperforming outlets.
Despite the lower earnings, the group recorded a net cash inflow of RM20.8 million during the quarter, compared with a net cash outflow of RM9.9 million a year earlier, supported by improved working capital management.
