SASBADI Holdings Bhd, a leading publisher and education solutions provider, has reported strong financial results for its 3Q FY2023 ending Aug 31, 2023 with the group’s net earnings having more than doubled to RM4.61 mil from RM2.03 mil in the previous year’s corresponding quarter.
This robust growth was mainly driven by its 51.78% revenue surge to RM29.40 mil during the period under review from RM19.37 mil posted in 3Q FY8/2022.
The strong earnings momentum was mainly credited to Sasbadi’s print publishing division which reported strong sales of academic publications in tandem with the new school academic year beginning in March 2023.
“We are delighted with our performance this quarter as our revenue and profit have outperformed the pre-COVID levels,” commented Sasbadi’s group managing director Law King Hui.
“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 nine-month period ended May 31, 2023, Sasbadi’s net profit soared by 276.92% to RM11.66 mil from RM3.09 mil in same period a year ago. This was in line with a 52.07% rise in the group’s revenue to RM79.57 mil during the same period.
The sharp increase in the group’s revenue was again attributed to its print publishing division amid strong sales of its academic publications and the contracts secured from the Education Ministry (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 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,” revealed Law.
Going forward, Sasbadi has entered into a strategic partnership with e-commerce giant Shopee. This partnership will see Shopee earmarking up to RM50 mil from July 1 this year to Feb 29, 2024 to assist pupils 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 which is amplifying its efforts to market BOOKR Class across Malaysia.
More recently on April 18, Sasbadi has also 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).
“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 4Q FY8/2023 and beyond,” added Law.
At the close of today’s market trading, Sasbadi was unchanged at 21 sen with 8.75 million shares traded, thus valuing the company at RM91 mil. – July 26, 2023
