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apple developer( losses widen due to strict Covid-19 measures


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,MyNews' CU store in Petaling Jaya.

KUALA LUMPUR: Convenience retail chain store operator MyNews Holdings Bhd fell deeper into the three-month ended July 31, due to the "harsher" lockdown in June and July.

"Mynews third quarter 2021 performance was mainly affected by the ongoing Covid-19 pandemic and the long period of severe movement control orders," it said in a filing today.

About 80% of the group's outlet are located in the Klang Valley and Selangor, where the pandemic hit the hardest.

The company made a loss of RM14.9mil compared with a loss of RM6mil a year ago.

Revenue declined to RM93.9mil from RM110mil previously. MyNews said gross profit decreased by 13.4% from RM32.5mil to RM28.1mil.

"In addition to the decrease in gross profit margin, the other contributing factors include the additional costs incurred in establishing and promoting the new CU stores and brand, transportation costs in launching Maru products nationwide and increase in delivery charges in tandem with the increase in online delivery sales," it said.

MyNews said the company has taken various measures to minimise risk and ensure sustainability during the pandemic.

"These measures include controlling cost in every aspect of the business operations and downsizing the store network and workforce through closures of poor performing stores," it said.

At the same time, the company said it has taken the opportunity to reposition itself for the upcoming post pandemic recovery expanding the omnichannel retail in collaboration with strong partners to deliver on-demand everyday goods and fresh foods.