Parkson Retail Asia reports lower net profit of $26.3 mil for FY2023 from weak consumer spending

The group’s revenue and gross sales proceeds has also declined due to weak consumer spending and fewer store count.

Department store operator Parkson Retail Asia O9e has reported a lower net profit of $26.3 million for the FY2023 ended Dec 31, 2023, a 8.5% y-o-y decline from the same period a year before.

The group recorded a lower profit before tax for the full year, at $37.6 million compared with $43.7 million of the corresponding year, mainly due to the fewer store count in 2023, as well as the weakened spending power of consumers compared to 2022.

Parkson’s earnings per share for the FY2023 came in at 3.91 cents per share, lower than the recorded 4.27 cents per share for the FY2022.

The group’s revenue saw a 4% decline y-o-y for the FY2023, at $221.5 million, from $231 million in the same period a year before.

Meanwhile, its gross sales proceeds saw a 9.1% y-o-y decrease for the FY2023 at $535.7 million, from $589 million in the same period a year before.

Likewise, the group says that its y-o-y decrease in total merchandise sales is mainly due to the lower store count during the year as well as the weakened spending power of consumers compared to the corresponding year.

However, rental income increased y-o-y by 5.5% mainly due to better sales attained by tenants. Food and beverage operations registered a y-o-y increase in sales by 6.2%, mainly due to the willingness of consumers to dine out following the recovery from the Covid-19 pandemic, they note.

Its merchandise gross profit margin stood at 27.7%.

As at Dec 31, 2023, the group’s department store network comprised 37 stores spanning approximately 409,000 sqm of gross floor area.

The group did not declare any dividends as it says that it is “still in accumulated losses position”.

Shares in Parkson Retail closed 0.03 cents lower or 5.357% down at 0.53 cents on Feb 23.

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