shopper360 posts 31% rise in half-year earnings to $1.5 mil after disposing loss-making unit

shopper360 posts 31% rise in half-year earnings to $1.5 mil after disposing loss-making unit

By: 
PC Lee
12/01/18, 07:29 am

SINGAPORE (Jan 12): shopper360, the provider of shopper marketing services in the retail and consumer goods industries, reported a 31% rise in 1H18 earnings ended Nov to RM 4.6 million ($1.53 million) from RM 3.5 million a year ago.

See: Singapore’s 2017 IPO activity to surpass that of 2016: PwC

This came on the back of the disposal of Paragon Premium Sdn. Bhd. which had reported a loss, net of tax, of RM 1.4 million in 1H17.

For continuing operations, revenue in 1H18 from rose 6% to RM 68.8 million from RM 64.8 million in 1H17 due to the increase in sales contributions from in-store advertising and digital marketing, and field force management segments, due to new projects from existing and new customers.

However, cost of sales rose a steeper 10% to RM 49.5 million, resulting in a 2% drop in gross profit to RM 19.3 million. Gross profit margin declined to 28% from 30%, largely due to higher revenue from projects that derived lower margins.

Other income decreased 43% to RM 0.1 million from RM 0.2 million due to a gain on disposal of property plant and equipment and dividends income of RM 0.01 million in 1H17, both of which did not recur in 1H FY18.

shopper360 says it is pleased with its 1H18 results.

Pos Ad, a wholly-owned subsidiary, had recently been awarded the media concession rights for one of the largest petrol-mart chain in Malaysia, expanding the group’s in-store advertising network coverage in the country.

In Nov, the group had also entered into a joint venture agreement with Pahtama Group Co, one of the fastest-growing distribution companies in the FMCG sector in Myanmar, to provide marketing services in the retail and consumer goods industries.

See: shopper360 in JV to provide marketing services in Myanmar

In Singapore, the group was appointed creative agency for Burger King.

The group says it will continue to secure new projects for its Malaysian and regional operations and remains cautiously optimistic about its performance for the financial year ending May 2018.

Shares in shopper360 closed at 25 cents.

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