KUALA LUMPUR: Synergy House Bhd registered a net loss of RM4.77 million in the second quarter (Q2) 2024 from a net profit of RM6.20 million a year ago.
The loss was primarily driven by a one-off provision for doubtful debts amounting to RM13.4 million.
"This is related to a specific customer which is partially net off against expected trade credit insurance receivable of RM3.15 million for a net impact of RM10.25 million," it said in a statement.
However, the company's revenue rose 32.07 per cent to RM77.4 million from RM58.6 million in the corresponding period last year supported by strong sales in both its business-to-business (B2B) and business-to-consumer (B2C) segments.
The company did not declare or recommend any dividend during the current financial quarter.
For the period of six months ended June 30, 2024, Synergy House's net profit fell 51.76 per cent to RM4.25 million from RM8.81 million last year.
Its revenue rose 46.19 per cent to RM161.03 million from RM110.15 million a year ago.
Synergy House said it remains cautiously optimistic about the potential of the global furniture e-commerce market.
With its strategies to grow the B2C segment, Synergy House said it is well-positioned for continued growth.
"Despite global economic challenges, the company's affordably priced home furniture products and strong presence on third-party e-commerce platforms in key markets are expected to drive further expansion," it added.