KUALA LUMPUR: Innature Bhd’s net profit rose marginally to RM7.76mil in the fourth quarter ended Dec 31, 2021 (4Q21) from RM7.71mil a year ago.

       The retailer of cosmetics and personal care products recorded a 2.6% year-on-year decline in 4Q21 revenue to RM43.68mil from RM44.84mil as a result of the muted contribution from its overseas businesses.

       “While Malaysia saw improving revenue by 2.4% amid economy reopening and year-end festivities, Vietnam remained impacted by Covid-19, with the country’s daily number of confirmed cases at the end of the reporting quarter continuing to swiftly trend upwards,” group managing director Datin Mina Cheah-Foong said in a statement.

       The lower revenue in 4Q21 in Cambodia was mainly due to cautious consumer sentiment given the evolving Covid-19 situation.

       “Our remote selling channels such as e-commerce, conversational commerce and social selling continue to contribute a significant portion to the group revenue post-lock down. These channels made up 14.2% of the group revenue in 4Q21 (8.8% for 4Q2020),” she added.

       During the reporting quarter, InNature exited two underperforming locations in Malaysia and opened its 39th store in Vietnam, bringing the total store count to 118 as at Dec 31, 2021.

       For the full financial year ended Dec 31, 2021 (FY21), the group’s net profit declined 25.5% to RM15.02mil against RM20.18mil previously.

       Revenue for the period fell 15.1% year-on-year to RM131.9mil, with businesses in Malaysia, Vietnam and Cambodia each recording lesser revenue by 14.8%, 17.7% and 2.2% respectively.

       The group’s remote selling channels mitigated the effect of Covid-19

       lockdown in FY21 with revenue contribution increasing by 2.6 times to 28.6%.

       InNature declared a final dividend of 1.5 sen per ordinary share for FY21. The entitlement date is on March 17 and payable on March 31, 2022.

       Including the interim dividend of 0.5 sen per ordinary share paid on June 15, 2021, total dividend declared for FY21 would be RM14.1mil, representing 94.0% of the group’s profit after tax.

       Commenting on its outlook, Cheah-Foong said, “We expect an improving year-on-year performance in FY2022 as long as businesses are allowed to operate unfettered.

       “We continue to invest in enhancing our systems and processes supporting both our physical and remote selling channels. Physical store locations remain a key contributor, hence we will ensure our brands are represented at all key locations.”