Strategic Partnership with Shopee Aims to Increase Academic Book Sales
Sasbadi's net profit more than doubled in 3QFY2023, with a 51.78% increase in revenue, mainly from its Print Publishing Division.
Sasbadi has also partnered with BOOKR Kids and had planned an acquisition from Integra Creative Media as part of its M&A strategy to diversify and boost inorganic growth.
KUALA LUMPUR, 26th JULY 2023 – Sasbadi Holdings Berhad ("Sasbadi" or "Group"), a leading publisher and education solutions provider, has reported strong financial results for the third quarter of its financial year ending 31 August 2023 ("3QFY2023").
The company's net profit has more than doubled, rising to RM4.61 million from RM2.03 million in the same quarter of the previous year. This robust growth was mainly driven by the increase of 51.78% in its revenue to RM29.40 million in 3QFY2023 as compared to RM19.37 million recorded in 3QFY2022.
A filing with Bursa Malaysia today shows that the strong earnings momentum reported during the current financial year was mainly credited to Sasbadi's Print Publishing Division which reported strong sales of academic publications corresponding with the new school academic year beginning in March 2023.
Group Managing Director of Sasbadi Mr Law King Hui, said, "We are delighted with our performance this quarter as our revenue and profit have outperformed pre-Covid-19 levels. The increasing demand for Sasbadi's unique products positions us as Malaysia's top choice for academic solutions among students, educators, and parents. This impressive growth also demonstrates Sasbadi's continued commitment to excellence and innovation in the academic solutions industry."
For the first nine months of its financial year that ended on May 31, 2023 ("9MFY2023"), Sasbadi's net profit soared by 276.92% to RM11.66 million, from RM3.09 million in the corresponding period a year ago. This strong earnings momentum was in line with the increase of 52.07% in its revenue to RM79.57 million during the same period.
The sharp increase in the Group's revenue was mainly attributed to its Print Publishing Division amid the strong sales of its academic publications and the contracts secured from the Ministry of Education ("MoE"). The contracts were to provide the service of supplying and delivering market-ready digital solutions in line with the Common European Framework of Reference for Languages ("CEFR") Year 1 and Year 3 as well as the supply of reprinted textbooks ("BCS") to schools under the MoE.
"We have continued to stay ahead of the curve by offering innovative publications, including digital solutions, to ensure enhanced teaching and learning experiences. This has helped to boost our earnings during the current financial year.
Our Group's strength lies in our ability to produce quality academic publications, merging traditional and digital elements (hybrid academic publications) and aligning with the national curriculum's most recent requirements. As the academic landscape shifts towards digital, Sasbadi has managed to grow our market share by delivering innovative, competitive, and relevant hybrid academic publications," Law said.
He also added that the Group's robust logistics and supply chain capabilities ensure timely delivery to accommodate high sales volume, reflecting Sasbadi's commitment to ensuring a smooth teaching and learning process.
Going forward, Sasbadi has entered into a strategic partnership with e-commerce giant, Shopee. This partnership will see Shopee earmarking up to RM50 million from 1 July 2023 to 29 February 2024, assisting students in acquiring Sasbadi publications. The collaboration aims to bolster sales while also supporting underserved communities.
Additionally, Sasbadi has partnered exclusively with BOOKR Kids, an esteemed Edtech company from Europe, amplifying its efforts to market BOOKR Class across Malaysia. Additionally, the company has on 18 April 2023 announced a potential acquisition of intellectual properties from Integra Creative Media Sdn Bhd, a publisher of children's books under the brand Oyez!Books, as the Group plans to spur its inorganic growth through mergers & acquisitions ("M&A").
Law added, "This has been a strong year for Sasbadi. Our forward-looking strategies signal our intent to further diversify our product range to surpass customer expectations. The M&A initiative is part of Sasbadi's key strategy to drive growth for the 4QFY2023 and beyond.
We remain optimistic about the Group's prospects for the remainder of this financial year ending August 31, 2023 ("FY2023") and we aim to achieve higher growth through diversification of product offerings that meet and exceed customers' expectations."
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