Esthetics International profit plunges 76% in Q1

PETALING JAYA: Esthetics International Group Bhd saw its net profit plunge 76% to RM760,000 in the first quarter ended June 30, from RM3.22 million in the same quarter last year attributable to foreign exchange losses and higher inventory cost due to a stronger US Dollar.
Despite challenging trading conditions and weak consumer sentiments, its revenue improved by 8% in the quarter under review to RM40.71 million from RM37.65 million supported by its investment in brand building and promotional activities.
Its board of directors said in a filing with Bursa Malaysia, that the beauty and wellness industry market is expected to achieve moderate growth in the longer term.
The group however expects its market to be impacted in the near term should the economic conditions deteriorate further which in turn will impact consumer spending.
Esthetics, which operates AsterSpring skin care salons and retail kiosk, said it will continue to adopt "focused and prudent strategies to execute its strategic long term priorities to grow its core brands and businesses."
The company's shares closed unchanged at 90 sen, with 39,000 shares traded.It has a market capitalisation of RM213.5 million.