Strategic Expansion and Steady Consumer Spending Position the Group for Future Growth
KUALA LUMPUR, 20 SEPTEMBER 2024 – SSF Home Group Berhad (“SSF” or the “Group”), a well-known retailer in furniture, home décor, and home living products, is pleased to announce its financial results for the first quarter of the financial year 2025 (“Q1 FY2025”). The Group recorded a revenue of RM32.0 million, reflecting the resilience of its business in the face of softer demand due to a weakened economic climate.
The Group’s Profit After Tax (“PAT”) for Q1 FY2025 stood at RM1.3 million, down from RM2.7 million in the corresponding quarter of the previous year (“Q1 FY2024”). This decline was attributed to the challenging market environment, though the Group continued to demonstrate operational resilience. Despite the softer revenue in this quarter, SSF has remained focused on maintaining solid gross margins and implementing strategic initiatives aimed at driving long-term growth.
Compared with the immediate preceding quarter (“Q4 FY2024”), SSF recorded a decrease in revenue from the RM50.6 million in Q4 FY2024. This decline was mainly driven by softer consumer demand following the seasonal highs in the prior quarter, which included key sales periods such as Chinese New Year and Hari Raya Aidilfitri. Meanwhile, PAT saw a dip to RM1.2 million from RM6.2 million in Q4 FY2024. The Group remains focused on its strategic initiatives and expanding its retail presence to drive future growth.
Notably, SSF added another key milestone to its expansion strategy with the opening of its new outlet in Danga Utama, Johor Bahru in August 2024. This addition brings the Group’s total number of outlets to 43 nationwide. Supported by an improving retail landscape, growing consumer purchasing power, and favourable market trends, the Group is well-positioned to capitalise on the anticipated growth in Malaysia’s retail trade.
Mr. Lok Kok Khong, Executive Director of SSF Home Group Berhad commented, “We are navigating through a period of softer consumer demand while continuing to build on our growth strategy. Our revenue of RM32.0 million in Q1 reflects our ability to adapt to changing market conditions, and with the expansion of our retail presence, we are well-positioned for the future. As we continue to enhance customer engagement and adapt to market dynamics, we are confident in our ability to capitalise on the increasing consumer spending power, supported by the flexibility of Employees Provident Fund (“EPF”) Account 3 withdrawals and the positive outlook for Malaysia’s retail trade.”
He added, “As we move forward, our focus remains on executing our strategic plans effectively, including the opening of more outlets and enhancing operational efficiencies. The improved retail environment and resilient consumer demand will serve as key drivers for our continued growth.”
The outlook for consumer spending in Malaysia remains positive, with BMI, a Fitch Solutions company, projecting household spending to grow by 5.0% in 2024 and 4.8% in 2025, driven by easing inflationary pressures and a resilient labour market. SSF is strategically poised to benefit from this growth through its ongoing expansion efforts and the ability to leverage consumer spending bolstered by withdrawals from the EPF Account 3. With RM6.98 billion withdrawn by EPF members as of June 2024, SSF expects this financial flexibility to further support demand for its home living products.
