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Parkson Retail Asia – Three Things That Investors Should Know From Its Latest Financial Results

From Wikimedia Commons

Parkson Retail Asia (SGX: O9E) operates department stores across Malaysia, Vietnam, Indonesia and Myanmar.

As the company has just recently announced its fourth-quarter FY17 results, we would like to share three useful slides about its business.

Overall result

Source: Parkson Retail Asia FY17 4th quarter result

Overall, revenue grew due to festive buying, following the shift in Hari Raya. Nevertheless, quarterly loss increased due to “non-operational impairment on property, plant and equipment of S$21.4 million (FY2016: S$5.4 million), and impairment on goodwill of S$4.3 million (FY2016: Nil).”

Segmental result

Source: Parkson Retail Asia FY17 4th quarter result

From the above, we see that operational pre-tax results were negative for all business segments, with the exception of Malaysia that posted a positive $1.6 million result.

5 years gross sales proceeds (GSP) and revenue trend

Source: Parkson Retail Asia FY17 4th quarter result

What we can see from the above is that both GSP and revenue have been falling in the last five years.

For FY17, we saw a marginal improvement in both measures of performance. Yet, it is unclear whether the turnaround is sustainable.

Conclusion:

Overall, we see that Parkson Retail had a challenging quarter with negative performance in most of its operating markets, reflecting the continuous challenges faced by department stores.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.