COURTS Asia has revealed a 3.7% dip in revenue from SG$740.5 million the year before to SG$713.1 million for the full year ended 31 March 2018. Profits were found to be at SG$8.1 million, down from SG$23.7 million the year before.
This was due to its Malaysia business performance, the retailer said in a recent financials release. Meanwhile, distribution and marketing expenses “remained relatively stable” at SG$56.5 million in FY2017-2018, at 7.9% of revenue, the group said.
Revenue from Malaysia, which contributed to 26.2% of COURTS turnover, slid 15.4% in Malaysian ringgit on a year-on-year basis in FY2017-2018. This was mainly due to lower sales of goods and earned service charge income.
According to COURTS Asia’s executive director and group CEO, Terence Donald O’Connor, the company faced headwinds in Malaysia following the introduction of the Consumer Protection (Credit Sale) Regulations 2017. This saw interest rates being capped at 15% per annum along with new compliance processes which led to a revenue drop.
“The fall in revenue, coupled with an increased credit cost and a more prudent credit sanctioning approach in Malaysia, affected our Group’s profitability,” O’Connor added. Following the results, COURTS Asia has formed a dedicated transformation taskforce to look into business processes and operations and execute transformation initiatives. Read more from marketing-interactive.com…
thumbnail courtesy of marketing-interactive.com