Synergy House Bhd · MYX:SYNERGY
Synergy House Bhd — Q4 2023 Earnings Presentation
33 slides from Synergy House Bhd's earnings presentation, March 2024
Slide 1: Q4FY23 Results Briefing
SYNERGY HOUSE BERHAD Q4FY23 Results Briefing March 2024 Stock code on Bursa Malaysia: 0279
Slide 2: 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 3: Agenda
AGENDA 1. Snapshot of Synergy House 3 2. Financial performance 9 3. Market outlook 20 4. Strategies for 2024 23 Technology and Artificial 5. 28 Intelligence Environmental, Social and 6. 30 Governance 7. Q&A 32
Slide 4: Snapshot of Synergy House
Snapshot of Synergy House We are a cross-border e-commerce seller and furniture exporter that specialises in beautifully designed and affordable ready-to-assemble home furniture. FY2023 Revenue FY2023 Profit After Tax B2B: 55.0% RM270.2 mil RM27.1 mil B2C: 45.0% Total marketplace: 11 2,673 SKU & des
Slide 5: Historical Share Price and Volume
HISTORICAL SHARE PRICE AND VOLUME Historical Closing Share Price and Volume 1-Jun 2023 7-Mar 2024 Opening Price RM 0.35 Closing Price RM 0.805 Volume 82,379,900 Volume 731,900 1.00 13-Feb Highest Price – RM 0.885 0.90 Increased Volume – 499,300 0.80 130% 0.70 0.60 0.50 0.40 0.30 1-Jun 2-Jul 2-Aug 2-
Slide 6: Dividend
Rewarding the shareholders 31 January 2024 1st interim dividend RM0.01 per share totaling to RM5 million paid 22 March 2024 2nd interim dividend RM0.006 per share totaling to RM3 million payable Dividend Dividend yield 2.0% for total dividend for FY2023*. * Based on closing share price as at 7 Mar 2
Slide 7: Business model
Business model We are a cross-border e-commerce seller and furniture exporter 1 Market research 2 Design & Development (D&D) 3 We are not a traditional Outsourced Third-party manufacturers carry out production furniture manufacturer. They are our supplier 4 instead of our Furniture manufacturers Del
Slide 8: B2C Target and Current Markets and Platforms
B2C Target and Current Markets and Platforms Country Platform 1) Lazada 1) Malaysia 2) Shopee Up to 2023 3) Wayfair US 2) USA 4) Amazon US 5) Amazon UK 3) UK 6) Wayfair UK 7) Cenports Commerce Inc 4) Canada 8) Mano-Mano UK 5) Germany 9) Wayfair Canada 10) Wayfair Germany 11) eBay UK 12) Amazon Germa
Slide 9: Agenda
AGENDA 1. Snapshot of Synergy House 3 2. Financial performance 9 3. Market outlook 20 4. Strategies for 2024 23 Technology and Artificial 5. 28 Intelligence Environmental, Social and 6. 30 Governance 7. Q&A 32
Slide 10: Q4FY23 Financial Highlights
Q4FY23 Financial Highlights Group’s Performance Q4FY2023 and Q3FY2023 Highlights of Q4FY23 Q4 Q3 QoQ FY 1. Overall revenue growth of 31.2% in Q4FY23 as RM ‘mil FY23 FY23 (%) 2023 compared to Q3FY23 as both segment increased. a. B2C sales peaked in Q4 2023, increased by Sales 68% as compared to Q3 20
Slide 11: Revenue by business segment
Revenue by business segment Q4 FY23 (RM million) Group’s Performance by Business Segment 1) For 4QFY23, B2C revenue contribution is 49% of total 44.5, 46.3, revenue while B2B at 51%. 49% 51% 2) For 4QFY23, B2C sales increased by 68% due to the year end promotions and holiday season while B2B sales i
Slide 12: Revenue by business segment
Revenue by business segment RM’millions B2B B2C 1) The Group continues to grow the B2C segment while B2B remains stable due to the Group’s long term customers. 121.7 45% 2) The Group expects the B2C sales 24.8 13% contribution to increase further 49.6 26% with new countries and platforms, 5.3 4% whi
Slide 13: B2C Revenue by Platforms & Countries (con’t)
B2C Revenue by Platforms & Countries (con’t) Historical Revenue Contribution by B2C Overall (RM’000) 121,702 145% 1) Continuous growth trend seen in the B2C. 2) For 12MFY23, B2C sales has exceed 12MFY22 by RM72million. 49,627 3) Traditionally, B2C sales peak towards the final quarter of the 24,777 c
Slide 14: B2C Revenue by Platforms & Countries (con’t)
B2C Revenue by Platforms & Countries (con’t) Historical Revenue Contribution by Wayfair US (RM’000) 91,591 (US) 146% 1) Commenced selling on Wayfair US on 2020 and has seen continuously huge growth. 2) 12M FY23 sales has exceeded 12 37,190 months FY22 by RM54mil or by 146%. 3) Q4FY23 sales grew by 6
Slide 15: B2C Revenue by Platforms & Countries (con’t)
B2C Revenue by Platforms & Countries (con’t) Historical Revenue Contribution by Wayfair UK (RM’000) 4,923 (UK) 2,681% 1) Commenced selling on Wayfair UK in late FY2022. 2) Encouraging growth seen in FY23 notable in Q4FY23 where sales grew by 118% from Q3FY23. 3) Currently have approximately more 177
Slide 16: B2C Revenue by Platforms & Countries (con’t)
B2C Revenue by Platforms & Countries (con’t) Historical Revenue Contribution by Amazon US (RM’000) 8,337 (US) 385% 1) Commenced selling on Amazon US in mid FY2022. 2) Growth of 21% in Q4FY23 as compared to Q3FY23. 1,717 3) Currently have approximately more than 299 SKU offered in the platform. FY 20
Slide 17: B2C Revenue by Platforms & Countries (con’t)
B2C Revenue by Platforms & Countries (con’t) Historical Revenue Contribution by Amazon UK (RM’000) 3,125 (UK) 1) Sales in Amazon UK commenced in late FY2022. 2) Sales in Q4FY23 grew by 170% as compared to sales in Q3FY23. 3) Currently have approximately more than 315 SKU offered in the platform. 0 F
Slide 18: B2C Revenue by Platforms & Countries (con’t)
B2C Revenue by Platforms & Countries (con’t) Historical Revenue Contribution by Others (RM’000) 4,975 2,292% 1) Other platforms the Group is in are such as Mano Mano and eBay in UK, Cenports in USA and Wayfair Canada and Wayfair Germany. 2) Above platforms collectively increased 208 by 97% in sales
Slide 19: Snapshot of Balance Sheet
Snapshot of Balance Sheet Total assets Total cash (RM’mil) (RM’mil) 1) Balance sheet continues to strengthen with higher 49.3 6.2 % 220.4 shareholder’s equity while gearing (5.3%) relatively maintains. 207.6 46.7 2) Recorded negative operating cash flow mainly due to higher Q3 FY23 Q4 FY23 receivabl
Slide 20: Agenda
AGENDA 1. Snapshot of Synergy House 3 2. Financial performance 9 3. Market outlook 20 4. Strategies for 2024 23 Technology and Artificial 5. 28 Intelligence Environmental, Social and 6. 30 Governance 7. Q&A 32
Slide 21: Market Outlook
Market Outlook North America Global furniture e-commerce sales grew from USD82.49 billion (RM379.45 billion) in 2021 to forecasted USD110.71 billion Particularly the United States, had a strong (RM509.27 billion) in 2023. During the same period, global presence in the cross-border B2C e-commerce fur
Slide 22: Market Outlook (cont’d)
Market Outlook (cont’d) Abundance in Growth opportunity Furniture e- commerce market for USA and Europe USD 67 billion in 2023: Synergy House total B2C sales for FY2023: USD 0.026 billion With only a presence of 0.04% of the furniture e-commerce market in USA and Europe, there is much potential for
Slide 23: Agenda
AGENDA 1. Snapshot of Synergy House 3 2. Financial performance 9 3. Market outlook 20 4. Strategies for 2024 23 Technology and Artificial 5. 28 Intelligence Environmental, Social and 6. 30 Governance 7. Q&A 32
Slide 24: 2024 Strategies
2024 Strategies 1 Continue to grow more on the B2C platforms and countries Action plans • Target new platforms in 2024: >4 • Project >2,000 B2C SKUs by end of 2024 (2023: 1,608) • Commence B2C sales in France Venture in 2024 March 2024 | page 24 / 38 | private and confidential
Slide 25: 2024 Strategies: New product categories
2024 Strategies 2 New product categories Home improvement items – Working on initiatives to commence • Vanity furniture • Kids bunk beds • Sofa • Wooden flooring • Wooden doors March 2024 | page 25 / 38 | private and confidential
Slide 26: 2024 Strategies: Technology and Artificial Intelligence
2024 Strategies 3 Increase utilisation of Technology and Artificial Intelligence “AI” Synergy places a strong focus on technology, artificial intelligence and fostering innovation to enhance all facets of our key operations Past 3 years Invested in Information Technology Software IT investment (eg.
Slide 27: Summary of Our 2024 Strategies
Summary of Our 2024 Strategies 1 Continue to grow more on the B2C platforms and countries • Target new platforms in 2024: >4 Action plans • Project >2,000 B2C SKUs by end of 2024 (2023: 1,608) • Commence B2C sales in France 2 New product categories • Vanity furniture • Wooden flooring Home improveme
Slide 28: Agenda
AGENDA 1. Snapshot of Synergy House 3 2. Financial performance 9 3. Market outlook 20 4. Strategies for 2024 23 Technology and Artificial 5. 28 Intelligence Environmental, Social and 6. 30 Governance 7. Q&A 32
Slide 29: Embracing Advancement in Technology and Artificial Intelligence
Embracing Advancement in Technology and Artificial Intelligence Marketing Project management - Order replenishment - Project tracking and status - Market trend analysis - Data management - Product description drafting using AI - Communication tool - Chatbot and AI for customer service and support Ad
Slide 30: Agenda
AGENDA 1. Snapshot of Synergy House 3 2. Financial performance 9 3. Market outlook 20 4. Strategies for 2024 23 Technology and Artificial 5. 28 Intelligence Environmental, Social and 6. 30 Governance 7. Q&A 32
Slide 31: Environmental, Social and Governance
ENVIRONMENTAL,SOCIAL AND GOVERNANCE SOCIAL ENVIRONMENTAL GOVERNANCE Use of particle board in some of our home Forest Stewardship Council (FSC) Anti-Bribery and Corruption Policy Sedex Members Ethical Trade Audit furniture • Our Group holds a valid FSC (SMETA) Internal Controls Policy • Particle boar
Slide 32: Q&A Session
Q&A Session March 2024 | page 32 / 38 | private and confidential
Slide 33: Thank You
THANK YOU www.synergyhouseberhad.com ir@synergy-house.com March 2024 | page 33 / 38 | private and confidential