MyNews set for earnings surge in FY23

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The convenience store operator is expected to turn profitable in FY23 on prudent store expansion, better product mix, food processing centre turnaround and new product launches.

MyNews, the convenience store operator, is expected to turn profitable in FY23 on prudent store expansion, better product mix, food processing centre turnaround and new product launches., which reported a net profit for its fourth quarter ended Oct 31, 2022 against a net loss in the similar period a year ago, is set to see a surge in earnings for the financial year 2023 .

“Risks to our call include the return of movement restrictions, hurting traffic to the stores, the playing field getting more crowded with new entrants or aggressive expansion by existing competitors, long gestation periods for new stores and reduced overall sales from the generational tobacco ban,” it said.

The research house said it sees the slower expansion as a positive development, albeit partly due to labour shortfall, as it would allow the convenience store operator to focus on enhancing its store productivity and offerings as well as costs may increase at a more benign pace versus revenue, which could shorten its “CU” operations’ gestation period.

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