Synergy House's Profit Plunges 73% To RM2.4 Million Despite Higher Revenue
For 1Q25, the group's net profit decreased by 72.8% to RM2.45 million from RM9.01 million.
This is despite the group recording revenue of RM88.1 million, a 5.3% increase from RM83.7 million in the corresponding period last year. This was underpinned by a strong performance in the group's business-to-consumer (B2C) segment.
The group's B2C revenue soared 17.3% year-on-year to RM51.2 million, up from RM43.7 million in the corresponding quarter last year. This performance was fuelled by strong demand from North America, Europe and Malaysia, as Synergy House continues to expand its presence on major e-commerce platforms and tap into evolving consumer trends.
The positive momentum in B2C helped partially offset a 7.8% contraction in business-to-business (B2B) revenue, which stood at RM36.9 million compared to RM40 million in 1Q24. The B2B segment faced headwinds from geopolitical tensions in Europe and Asia, although North American markets remained resilient.
Despite the profit dip, Synergy House Executive Director Tan Eu Tah said the group's financial position remains strong.
'As of March 31, 2025, the group reported shareholders' funds of RM126.2 million, a net gearing ratio of just 0.09 times and a healthy current ratio of 1.9 times.
'The group also held RM59.9 million in cash, bank balances and short-term investments, reinforcing its liquidity and ability to navigate short-term obligations,' Tan said, adding that the group will maintain a cautiously optimistic outlook for the remainder of FY25.
'We are sharpening our B2C strategy by diversifying across more e-commerce platforms and expanding into premium product categories that align with shifting consumer preferences.
'Our investment in artificial intelligence and market intelligence tools is equipping us with real-time insights to respond faster and smarter,' he said.
While the near-term outlook remains clouded by macro and geopolitical risks, Tan said Synergy House is anchoring its strategy on digital transformation, product innovation and resilient e-commerce channels.
'We are committed to responsible growth that delivers long-term value to our stakeholders.
'By blending innovation with operational discipline, we aim to strengthen our position as a global player in the online furniture retail space,' Tan added. Related
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