BRIEF: Lianhua Supermarket’s Q1 revenue slumps, but profit doubles
Lianhua Supermarket Holdings Co. Ltd. (0980.HK) reported Tuesday that its revenue fell 15% year-over-year to 5.97 billion yuan ($821 million) in the first quarter, while its profit surged 141% to nearly 180 million yuan.
Revenue from the company’s hypermarkets dropped 22% to 2.45 billion yuan. Its supermarket revenue declined 9.3% to 3.1 billion yuan, while convenience stores fell 13.8% to 410 million yuan. The company did not explain why its profit surged in the face of declining revenues.
During the period, Lianhua closed 37 stores in East China, including 32 franchised locations. Over the same period, it opened 34 new stores in the region, with 21 operating under franchise agreements.
Shares of Lianhua Supermarket opened up 7.4% at HK$0.365 on Wednesday, though they later gave back most of those gains and were up 2.9% midway through the morning session. The shares are down over 30% from their 52-week high.
By Lau Chi Hang
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