KUALA LUMPUR: Synergy House Berhad reported a pre-tax profit of RM12.3 million in the first quarter of its financial year, ending March 31, 2024 (Q1 FY2024), marking an impressive surge of 245.25 per cent from RM3.6 million achieved during the same period last year (Q1 FY2023).
The cross-border e-commerce seller and furniture exporter specialising in ready-to-assemble (RTA) home furniture attributed this achievement to its intensified marketing efforts in existing markets and its foray into new business platforms.
Its revenue soared by 62.22 per cent to RM83.7 million, a significant uptick compared to RM51.6 million recorded in Q1 FY2023.
The company credited this surge to robust sales across both its business-to-business (B2B) and business-to-consumer (B2C) segments.
The B2B segment witnessed a revenue increase of RM40 million, up by 46.10 per cent from RM27.4 million in Q1 FY2023, driven primarily by strong sales from a major retailer in the United Kingdom (UK) market. Meanwhile, the B2C segment recorded revenue of RM43.7 million, marking an 80.47 per cent surge from RM24.2 million in Q1 FY2023, propelled by robust sales on e-commerce platforms in the United States of America (USA) and the UK.
Synergy House's executive director, Tan Eu Tah, said the significant revenue growth and profit margins compared against Q1 FY2023 underscore the company's strong market position and the effectiveness of its strategic initiatives.
"Our ongoing efforts to expand our B2C segment, enhance our online presence, and enter new markets are yielding positive results. We are committed to leveraging our strengths to capitalise on the vast opportunities within the global furniture e-commerce market," he said in a statement.
Meanwhile, Teh Yee Luen, another executive director at Synergy House, noted that the Q1 FY2024 performance reflects the success of the company's strategic initiatives, particularly in the B2C segment.
"We are excited about the future and our ongoing efforts to expand our product range and enhance customer engagement. Utilising information technology and artificial intelligence to analyse market trends and customer behaviours has increased our efficiency and accuracy in operating in the B2C segment," Teh said.
Despite uncertainties in the global economy, Synergy House maintains a cautiously optimistic outlook on the potential of the global furniture e-commerce market.
Through strategic initiatives targeting the expansion of the B2C segment, the company is primed for sustained growth. These initiatives include widening customer reach through additional e-commerce platforms, enhancing revenue through advertisements and promotions, and harnessing technology and artificial intelligence.
Additionally, the company's competitively priced home furniture products and strong presence on third-party e-commerce platforms in key markets are expected to fuel further expansion.