Synergy House Bhd · MYX:SYNERGY
Synergy House Bhd — Q4 2024 Earnings Presentation
25 slides from Synergy House Bhd's earnings presentation, March 2025
Slide 1: Corporate Presentation March 2025
CORPORATE PRESENTATION MARCH 2025
Slide 2: Cross-border e-commerce seller and RTA furniture exporter
We are a cross-border e-commerce seller and furniture exporter that specializes in beautifully designed and affordable ready-to-assemble (RTA) home furniture
Slide 3: Bedroom, Living Room and Dining Room Furniture
CATEGORY PRODUCT Bedroom Furniture Living Room Furniture Dining Room Furniture
Slide 4: Target Customers
Young adults and students TARGET CUSTOMERS Who have not yet settled down and often need to move around cities or countries in search of jobs or educational opportunities. Renting rooms or houses No budget for expensive furniture Wish to have stylish yet affordable furniture Since they are busy and e
Slide 5: Synergy House Snapshot
SYNERGY 7 >15 >2,900 HOUSE SNAPSHOT As at 31 December 2024 Markets Marketplaces SKUs RM392.4 million Revenue FY2024 RM27.8 million PATMI FY2024 97.3% Export Revenue 51% - B2B 49% - B2C SEGMENTAL BREAKDOWN
Slide 6: Business Model: Design and Development
BUSINESS MODEL 06 STAGE 1 Design and Development (D&D) 1 CONCEPTUALISATION • Consumer-Centric Design Approach • Survey, feedbacks, market trends • Market Viability and Differentiation 2 PRODUCT DEVELOPMENT • Develops prototypes based on drawings and specification. 3 TESTING • Prototypes are tested b
Slide 7: Business Model: Sales and Production
BUSINESS MODEL 07 STAGE 2 Sales and Production B2B B2C 1 INQUIRY AND QUOTATION 1 DESIGN APPROVAL & MANUFACTURER ASSIGNMENT • Inquiries received from B2B customers (online retailers, chain- • Product designs selected for direct sales to B2C customers. store retailers, wholesalers). • Assigned third-p
Slide 8: Market Opportunities and Prospects
MARKET OPPORTUNITIES AND PROSPECTS 08 Global furniture e-commerce sales projected to grow to USD147.6 billion in 2025 BOUNDLESS GROWTH AHEAD: from USD111.7 billion in 2023. TAPPING INTO A USD 87 BILLION(3) MARKET 15% 147.56 Global Furniture Furniture e-commerce 128.28 E-commerce market for USA and U
Slide 9: Environmental, Social and Governance
ENVIRONMENTAL, SOCIAL AND GOVERNANCE 09 SOCIAL ENVIRONMENTAL GOVERNANCE Sedex Members Ethical Trade Audit Use of particle board in some of our home Forest Stewardship Anti-Bribery and Corruption Policy (SMETA) furniture Council (FSC) • Carry out yearly SMETA audits on our • Particle boards are gener
Slide 10: Financial Performance
FINANCIAL PERFORMANCE
Slide 11: 4QFY2024 Financial Review
FINANCIAL PERFORMANCE 011 4QFY2024 Financial Review Achieved Record Revenue of RM392m in FY24 FYE 31 Dec FY24 FY23 Q4FY24 Q4FY23 % chg % chg (RM mil) (Unaudited) (Audited) • FY24 Revenue rose 45% to RM392.4m, mainly driven by: ➢ B2C sales increased to RM194.0m (+59%), quantity sold was approximately
Slide 12: Quarterly Performance Review
FINANCIAL PERFORMANCE 012 Quarterly Performance Review Record Quarterly Revenue (RM117.4m) & PATMI (RM12.6m) in RM mil 4QFY24 114.0 117.4 90.8 • Quarterly revenue on steady growth trend, driven by B2B and B2C segments REVENUE 83.7 77.4 69.2 51.6 55.6 • The blip in revenue / PATMI in 2QFY24 mainly du
Slide 13: Financial Position
FINANCIAL PERFORMANCE 013 Financial Position Balance sheet remains healthy RM MIL 31 Dec 2024 31 Dec 2023 % chg (Unaudited) (Audited) • Net Gearing improved to 0.10x as at end-Dec 2024 compared to 0.17x as at end-Dec 2023 Non-Current Assets 66.2 55.6 + 19% ➢ Cash & bank balances and liquid short-ter
Slide 14: Group Performance YoY by Segment
FINANCIAL PERFORMANCE 014 Group Performance YoY by Segment • RAPID B2C GROWTH: In just four years, Synergy’s B2C segment surged from 4% of total revenue in FY2020 to 49% in FY2024, B2B B2C 193.99 reflecting the Group’s focused efforts in expanding direct-to- consumer sales. • STRATEGIC FOCUS ON B2C:
Slide 15: Benefits of B2C Market
BENEFITS OF B2C MARKET 015 E-COMMERCE: THE FUTURE OF FURNITURE RETAIL • With the rise of e-commerce, even large-ticket items like furniture are increasingly being purchased online. Synergy is well-positioned to capitalise on this shift, reaching millions of potential customers globally and driving f
Slide 16: Group Performance by Region (B2B & B2C)
FINANCIAL PERFORMANCE 016 Group Performance by Region (B2B & B2C) Others – 0.2% UK – Malaysia – 5.6% 42 .8 Asia – 0.7% % France – 0.7% Canada – 3.6% FY24 Revenue FY24 Revenue for B2C Segment UAE – 13.7% for B2B Segment Germany – 0.4% by Country by Country .1 % UK – 17.6% 72 – A US USA – 4 2. 5 % REV
Slide 17: Group Performance by Region (B2C)
FINANCIAL PERFORMANCE 017 Group Performance by Region (B2C) REVENUE (RM mil) 140.0 • Commenced selling in 2020 through Wayfair 104.0 • Largest market for furniture e-commerce globally +167% • Contributed 72% in B2C segment of the group revenue 39.0 for FY2024 1.2 14.4 • CAGR 228.65% over 4 years 202
Slide 18: Group Performance by Region (B2C)
FINANCIAL PERFORMANCE 018 Group Performance by Region (B2C) REVENUE (RM mil) 34.2 +298% • Commenced selling in 2022 • FY24 sales has been increased by 298% as compared to FY23 8.6 0.2 • CAGR 1,207.67% over 2 years 2022 2023 2024 0.8 • Commenced selling in 2023 +2567% • FY24 sales has been increased
Slide 19: Investment Highlights
INVESTMENT HIGHLIGHTS
Slide 20: Investment Highlights
INVESTMENT HIGHLIGHTS 020 Best-in-class Financial Performance • >45% revenue growth and >20% ROE, significantly outpacing industry peers. • Healthy dividend payout, Synergy delivers both high growth and dividends. Growth is in Synergy’s DNA • Synergy operates with a growth mindset, always seeking ne
Slide 21: Investment Highlights
INVESTMENT HIGHLIGHTS 021 Data-Driven Design & Innovation • Synergy constantly accumulates sales data and leverages big data analytics to refine designs. By analysing consumer preferences and purchasing behaviour, Synergy ensures that every product aligns with market demand. AI & Technology-powered
Slide 22: Investment Highlights (cont'd)
INVESTMENT HIGHLIGHTS (cont’d) 022 Continuous Improvement in Supply Chain & Inventory Management • As a true product company, Synergy continues to invest in human capital and improve its supply chain expertise, ensuring seamless coordination between design, manufacturing partners, and logistics. • B
Slide 23: Disclaimer
DISCLAIMER This presentation may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumpti
Slide 24: Q&A Session
Q&A SESSION SYNERGY HOUSE BERHAD Lot 19.A, Level 19, Top Glove Tower No. 16, Persiaran Setia Dagang Bandar Setia Alam, Seksyen U13 40170 Shah Alam Selangor, Malaysia Tel : +6017-366 3426 Email: info@synergy-house.com
Slide 25: Thank You
THANK YOU SYNERGY HOUSE BERHAD Lot 19.A, Level 19, Top Glove Tower No. 16, Persiaran Setia Dagang Bandar Setia Alam, Seksyen U13 40170 Shah Alam Selangor, Malaysia Tel : +6017-366 3426 Email: info@synergy-house.com