KUALA LUMPUR: Air fragrance manufacturer Vanzo Holdings Bhd remains confident in its future performance, in line with the continuous growth within the fragrance industry.
Managing director Allan Wong said the industry had grown by about 10% from 2021 to 2023.
“We are projecting that even from now to 2026, the uptrend will continue and the market growth will rise,” he said during a press conference after the group’s listing ceremony here yesterday.
Wong attributed the growth to the increase in consumers’ preferences towards purchasing vehicles and houses.
When asked whether the group is looking to penetrate new markets outside of Malaysia, Wong said Vanzo is always open to new opportunities.
“For now, we will mainly focus on the Malaysian market because there is still potential for the industry to grow. But in the future, of course we would want to be recognised as a well-known brand in South-East Asia,” he added.
When asked on the possibility of the automotive industry declining, Wong said the group’s other business segment – such as indoor fragrances, will support any potential impact.
“One thing is that Vanzo does not only focus on car fragrances. We also have different categories such as indoor fragrances.
“Also, whatever scents there are, we can create it into a potential product for release,” he said.
Vanzo made a solid debut on the ACE Market of Bursa Malaysia, opening at 17.5 sen with a volume of 14.32 million shares changing hands. This reflected a premium of 16.67% from its initial public offering price of 15 sen per share.
Prior to its market debut, the group saw an oversubscription of 66.71 times through an issuance of 93.35 million new ordinary shares and had successfully raised RM14mil in proceeds.
Vanzo will be utilising RM6.6mil or 47.2% of the proceeds towards business expansion and marketing activities, 21.4% to repay bank borrowings, 5% for working capital and 26.4% for estimated listing expenses.
The group’s expansion plans include the setting up of four new retail kiosks within Peninsular Malaysia and Sabah and Sarawak by 2026 as a move to increase brand visibility and to grow its customer base.
When asked regarding the opening of kiosks instead of stores, Wong said higher costs were taken into account, especially in terms of rental.
As of June 2024, the group had posted a revenue of RM36.8mil as well as a gross profit of RM14.01mil. Its car fragrances segment contributed to the majority of the group’s earnings at 77.6%, followed by indoor fragrances at 23.1% and personal and household care products, as well as accessories and others segment, at about 1%.
At closing yesterday, Vanzo closed up 1.5 sen to 16.5 sen. It was the most active stock with 201.56 million shares traded.
