Synergy House Achieves Record Growth with RM69.2 Million Revenue, Profits after Tax Surge by 30.24% in 3Q FY2023

SHAH ALAM, Malaysia, Nov 23, 2023 - (ACN Newswire) - Synergy House Berhad (“Synergy House” or the “Group”), a cross-border e-commerce seller and furniture exporter of ready-to-assemble (“RTA”) home furniture, today announced outstanding financial results for the third quarter ended 30 September 2023 (“3Q FY2023”).

In a remarkable display of growth, the Group reported a robust revenue of RM69.2 million and profit after tax (“PAT”) of RM8.1 million for 3Q FY2023, indicating significant quarter-on-quarter improvements. This exceptional performance for the current quarter is largely attributed to Synergy House’s business-to-consumer (B2C) sector’s improved margins, along with the strong growth in its business-to-business (B2B) operations.

The Group’s diverse global reach was highlighted in its regional revenue contributions: the United States of America (“USA”) led with RM30.9 million, underscoring its position as the largest market and a testament to the Group’s impactful B2C strategy. The United Kingdom followed closely with RM27.6 million, while the United Arab Emirates contributed RM8.6 million.

For the 9-month period ending 30 September 2023, the Group reported a total revenue of RM179.4 million and a PAT of RM16.9 million, surpassing the PAT of RM16.6 million recorded in the previous 12-month financial year ended 31 December 2022.

The B2C segment was particularly significant, contributing RM77.1 million for the 9-month period ending 30 September 2023, surpassing the total B2C revenue of RM49.6 million recorded in the previous 12-month financial year financial year ended 31 December 2022. This underscores the success of Synergy House’s targeted focus on and investment in the B2C sector.

Executive Director of Synergy House, Mr. Tan Eu Tah said, “The current quarter’s extraordinary results are a clear indicator of the effectiveness of our strategies, particularly in the B2C segment. Notably, our geographical diversification of our B2C segment to UK started to provide positive outcome with an impressive quarter-on-quarter growth of approximately 95%, with revenue reaching RM2.1 million in the third quarter of FY2023, reinforcing our position as a key player in this significant market. Our focused approach in expanding our online presence and enhancing customer engagement has paid off, leading to remarkable growth in both our B2B and B2C segments. We are thrilled with the progress and are committed to continuing our journey towards becoming a dominant force in the global furniture e-commerce market.”

Executive Director of Synergy House, Mr. Teh Yee Luen said, "We are immensely proud of our team’s efforts in achieving these results. The growth in our B2C segment, especially, represents our commitment to meeting consumer demands and adapting to market trends. Our strategies to enhance online visibility and customer reach, coupled with our focus on design innovation, are essential components of our long-term growth plan. We are confident that these strategies will enable us to further strengthen our market position and achieve sustainable growth."

Looking forward, Synergy House is poised for continued growth with plans to enhance its B2C segment through various strategic initiatives and expand its product range through continuous design and development efforts, and explore opportunities to reach new audiences by expanding to new e-commerce platforms and entering untapped markets in different countries.

Despite global economic challenges, the Group remains optimistic about its prospects in the global furniture e-commerce market, supported by its competitive pricing and established presence in key markets such as the USA, UK, and Canada.

As at 23 November 2023, the share price of Synergy House is RM0.57, representing a market capitalisation of RM285.0 million.