Sasbadi Holdings Bhd's revenue for FY2023 rose 39.6% to RM96.36 million from RM69.03 million in the previous year which it said was the group's highest full-year revenue ever recorded since its inception.

KUALA LUMPUR (Oct 30): Educational materials publisher Sasbadi Holdings Bhd narrowed its net loss to RM1.48 million in its fourth financial quarter ended Aug 31, 2023 (4QFY2023) from RM2.25 million a year earlier, largely due to a reduction in provision of inventories writedown where RM3.04 million was recognised in the current quarter as compared with RM3.45 million recognised in 4QFY2022.

Quarterly revenue was flat at RM16.79 million in 4QFY2023 compared with RM16.71 million a year ago.

Nevertheless, the group managed to end its full financial year ended Aug 31, 2023 (FY2023) on an impressive note, with net profit surging 1,110.6% to RM10.18 million from RM841,000 in FY2022. Sasbadi attributed the improved yearly performance to higher sales of its academic books and contracts secured from the Ministry of Education, as well as higher contribution from the digital solution.

It also declared a second interim dividend of 0.25 sen per share for FY2023, payable on Jan 3, 2024.

In a bourse filing on Monday, Sasbadi said its net profit for FY2023 was the highest since FY2017. “This marks an exceptional return for our group despite challenging macroeconomic conditions including rising costs, weak ringgit strength, sluggish retail activity, and conservative consumer spending.”

Revenue for FY2023 rose 39.6% to RM96.36 million from RM69.03 million in the previous year. Sasbadi said this was the group’s highest full-year revenue ever recorded since its inception.

Company hits M&A trail from FY2024

Looking ahead, Sasbadi said it acknowledges that additional growth must be achieved through fresh sources of revenue.

“A key strategy to achieve this for FY2024 and beyond is through mergers and acquisitions (M&As) that strategically fill niches, which our group has little/no market presence in. By acquiring the right companies, our group can swiftly launch into new business segments with significant market share while improving the acquired companies’ financial performance by leveraging on our group’s competitive strengths, including improved economies of scale, in-house digital capabilities, and efficient, extensive supply chain.

“In an industry where content is king, M&As will greatly expand our portfolio and accelerate our time to market in new business segments, thus spurring inorganic growth in a short span of time,” it said.

Sasbadi has also set sights on the early childhood education (ECE) segment from FY2024.

It plans to tap into the huge growth potential of Malaysia’s ECE segment by offering ECE course materials of the highest standard that provide a form of standardisation across kindergartens whilst ensuring specific learning goals are met.

In separate filings, Sasbadi also announced the appointment of Law En Ruey, 38, the son of group managing director Law King Hui, as executive director of the company effective immediately. This comes as En Ruey’s sister Law Yi Chian, who is also an executive director, is taking a one-year sabbatical leave.

Sasbadi shares closed unchanged at 17 sen on Monday, with 408,900 shares traded. Its market capitalisation stood at RM73.73 million. Year to date, the counter has risen 41.7%.