Link: https://links.sgx.com/1.0.0/corporate-announcements/3X1RB7AJLF6SBEMG/056a37a680b78b3b32b6c77cb7b6e984a833de719922e5f12af9d2877e01f2ed

Summary:

• Revenue: RM184.2 million (up 2.0%), driven by a 7.3% increase in the Sales Execution & Distribution segment; offset by a 17.4% decline in the Advertising & Marketing segment, mainly due to geopolitical tensions affecting client advertising spend and exit from Myanmar operations.

• Cost of Sales: Up 8% to RM154.9 million, outpacing revenue growth due to shift to lower-margin services.

• Gross Profit & Margin: Gross profit fell 22% to RM29.4 million (margin down to 15.9% from 20.9%).

• Net Loss: RM13.8 million, versus RM2.0 million profit last year; earnings per share (EPS) at (12.37) sen (prior: 2.54 sen).

• Dividend: No dividend declared to preserve cash for working capital and investment.

• Balance Sheet/Financials: Equity reduced to RM64.6 million (from RM74.7m), with positive working capital of RM42.5 million. Net cash down RM7.5 million. Non-current assets dropped mainly due to fair value loss on BetterPlace investment.

• Operational Highlights: Launched digital and AI-driven products (contest/retail platforms, analytics via Avinity, Boostorder B2B platform). Continued field-force and retail solutions expansion.

• Strategy & Outlook: Prioritizing resilient Malaysia/Singapore core, digital innovation, and cost control. Focus on contest management, payroll outsourcing, and deeper data/insights offerings. No immediate recovery seen due to global uncertainties, but group aims to leverage strong working capital and market positioning for future opportunities.

• Board/Management: No material change. No related party issues or major compliance exceptions reported.

TL;DR: FY2025 saw modest revenue growth but a sharp swing to loss for Shopper360 due to a segmental mix shift, rising costs, and external macro pressures. The group retains a solid financial position and is focused on technology-led growth in its core markets.