KUALA LUMPUR: Sasbadi Holdings Bhd
is looking at merger & acquisitions (M&As) as it seeks to accelerate growth and to enter new business segments.
“A key strategy to achieve this for financial year ending Aug 31, 2024 (FY24) and beyond is through M&As that strategically fill niches which our group has little/no market presence in,” the publisher said the notes accompanying its financial results.
Sasbadi said by acquiring the right companies, the group can swiftly launch into new business segments with significant market share
whilst improving the acquired companies’ financial performance by leveraging on its competitive strengths, including improved economies of scale, in-house digital capabilities, and efficient, extensive supply chain.
“In an industry where content is king, M&As will greatly expand our portfolio and accelerate our time to market in new business segments, thus spurring inorganic growth in a short span of time,” it said.
Sasbadi has set its sights on the early childhood education (ECE) segment for FY24 and beyond.
“The group plans to tap into the huge growth potential of Malaysia’s ECE segment by offering ECE course materials of the highest standard that provide a form of standardisation across kindergartens whilst ensuring specific learning goals are met.
“Besides that, our group has already expanded our repertoire of ECE products suited for the home market (B2C), notably via our exclusive partnership with BOOKR Kids to distribute the BOOKR Class digital library in Malaysia, and the proposed acquisition of a list of IPs from Integra Creative Media Sdn Bhd, a publisher of children's books under the brand Oyez!Books (pending completion).
“We strongly believe BOOKR Class, Oyez!Books, and Peapod Readers will synergise well and form a strong foundation for our group to be a formidable player in the ECE segment in Malaysia,” Sasbadi said.
In the fourth quarter ended Aug 31 (4Q), Sasbadi posted a smaller net loss of RM1.5mil, or loss per share of 0.34 sen against RM2.2mil, or 0.53 sen a year earlier.
Revenue for the quarter rose marginally to RM16.8mil from RM16.7mil last year.
For FY23, it posted a net profit of RM10.2mil on a record revenue of RM96.4mil.
It has declared and approved the payment of a second interim single tier dividend of 0.25 sen, to be paid on Jan 3, 20224.
“Our group is very proud to report that FY23 has been our best performing financial year since FY17 (in terms of net profit), marking an exceptional return for our group despite challenging macroeconomic conditions including rising costs, weak ringgit strength, sluggish retail activity, and conservative consumer spending,” Sasbadi said.
