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Parkson Retail Announces Quarterly Results For the First Quarter Ended 31 March 2018


Parkson Retail Announces Quarterly Results For the First Quarter Ended 31 March 2018

Financial Highlights
For the quarter ended 31 March

(RMB’ million) 2017
(RMB’ million)
Gross sales proceeds
(Inclusive of value-added tax) 4,324.2 4,406.9
Total operating revenue 1,291.1 1,255.0
Total operating profit/(loss) 87.9 31.2
Profit attributable to shareholders 44.1 1.1

(21 May 2018 – HONG KONG) Parkson Retail Group Limited, its subsidiaries, a joint venture and associated companies (“Parkson” or the “Group”, stock code: 3368), the leading nationwide lifestyle retail operator in China, today announces its encouraging quarterly results for the quarter ended 31 March 2018 with profit attributable to shareholders of RMB44.1 million, an increase of 39 times from that of the same period last year.

Total operating revenue grew by 2.9% to RMB1,291.1 million during the first quarter ended 31 March 2018 (“Q1 2018”). The increase was contributed by the strong sales performance of the Cosmetics & Accessories category in direct sales. Same store sales (“SSS”) for the quarter increased by 1.7%, demonstrating an encouraging rebound of sales trend from the decrease of 2.2% in the same period last year. The Group’s gross sales proceeds, inclusive of value-added tax, were RMB4,324.2 million in Q1 2018, a decrease of 1.9% as compared to the same period last year. This was mainly due the closure of six underperforming stores in 2017 as part of the Group’s continuing effort to optimize the productivity of stores and to better utilize resources.

Total operating expenses excluding purchases of goods and changes in inventories decreased by 8.3% to RMB682.6 million at the Group level and 2.6% on a same store basis, as a result of the management’s continuing cost control effort.

Profit from operations was RMB87.9 million in Q1 2018, an increase of 181.7% from the same period last year.

In January 2018, the Group has successfully bought back a sum of USD258.9 million of the principal amount of the USD500.0 million bonds that were maturing on 3 May 2018 by utilizing the credit facility granted by the Bank of Beijing (Shanghai branch). Through this exercise, the Group has successfully extended its debt maturity profile.

Executive Director and Chairman Tan Sri William Cheng said, “We are pleased to deliver our solid first quarter results of 2018 backed by our successful transformation strategy of diversified retail formats. The strong consumption power led by the robust GDP growth in China in the first quarter of 2018 also contributed as a driving force for our business growth. Going forward, we shall continue to focus on our transformation strategy while optimizing our productivity and continuing our cost control efforts.”


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