Last updated on August 23, 2025
SHAH ALAM, 13 AUGUST 2025 – SYNERGY HOUSE BERHAD (“Synergy” or the “Group”), a cross-border e-commerce seller and furniture exporter of ready-to-assemble (“RTA”) home furniture, announced its financial results for the second quarter (“2QFY2025”) of the financial year ending 31 December 2025 (“FY2025”).
FINANCIAL PERFORMANCE – 2QFY2025
The Group recorded a profit before tax (PBT) of RM1.8 million, a notable turnaround from a loss before tax (LBT) of RM6.4 million in the corresponding quarter of the previous year. This performance underscores the Group’s ongoing strategic efforts in cost management, digital transformation, and a growing focus on the business-to-consumer (B2C) segment. The resilience of the B2C segment continues to shine with higher volume which generated higher revenue as compared to the corresponding quarter of the previous year. This is also despite the unfavourable foreign exchange rate seen in the current quarter.
Financial Highlights:
- Revenue for 2QFY2025 stood at RM69.0 million, representing a 10.9% decline year-on-year, primarily due to reduced contributions from the business-to-business (B2B) segment in the UK market.
- The B2B segment registered RM26.9 million, a 24.3% decrease from the previous year, attributed to softer demand from the UK. This was partially offset by stronger sales from the USA.
- The B2C segment demonstrated resilience, growing by 0.6% year-on-year to RM42.1 million, driven by higher sales in the UK.
- PBT improved to RM1.8 million, compared to an LBT of RM6.4 million in 2QFY2024, due largely to the absence of a one-off provision for doubtful debts (RM10.3 million in prior year).
➢ While the Group faced headwinds from an 8.3% decline in the USD/MYR exchange rate and foreign exchange losses (RM2.0 million in 2QFY2025 vs. RM0.9 million in 2QFY2024), it maintained profitability through proactive cost optimisation.
➢ The Group recorded a RM0.4 million write-off in preliminary professional costs related to an earlier planned land development, showcasing disciplined financial housekeeping.
Year-to-Date Performance (1HFY2025):
- Revenue reached RM157.0 million, a marginal 2.5% decline from the same period last year.
- B2C revenue grew by RM7.8 million (9.1%), aligning with the Group’s strategic pivot toward direct-to-consumer channels.
- PBT for 1HFY2025 was RM5.2 million, slightly lower than RM5.8 million in the prior year.
- Operating expenses decreased by RM6.6 million, mainly from the absence of doubtful debt provisions, reinforcing improved financial discipline.
- The Group also optimized its operations, reducing headcount by 3% and lowering advertising costs while improving return on ad spend.
Financial Position
As at 30 June 2025, the Group maintained a robust balance sheet with shareholders’ funds of RM127.2 million and a net gearing ratio of 0.04 times. A strong cash and bank balance and short-term investment totaling RM45.7 million, together with a healthy current ratio of 2.02 times, underscores our solid financial position and ability to meet short-term obligations effectively.
Statements from the Group Executive Directors
Synergy’s Executive Director Tan Eu Tah said, “As we navigate a shifting global backdrop, our direction is clear: build a technology-led, be a customer-first e-commerce leader.”
“The expansion of our B2C segment is accelerating how we serve consumers—through platform growth, selective entry into attractive new markets, higher average price points and a broader, design-forward range. Recent tariff developments sharpen our focus; Malaysia’s favourable trade position and our proactive actions—smart repricing, deeper supplier collaboration and a disciplined channel mix—support resilience. Momentum is visible whereby on Wayfair, sales rose 21% in the US and 51% in the UK in 2QFY25 versus 2QFY24 despite the challenges and unfavourable exchange rate. With technology as a force multiplier, we’re confident our B2C core will drive sustainability and improve profitability.
All in all, we will continue to work smarter with technology, strengthen our core B2C segment which is our future, and we believe our best days are ahead.”
Continued Executive Director Teh Yee Luen, “Technology will be the cornerstone of this transformation. By embedding artificial intelligence, robotic process automation, and market intelligence tools across our operations, we are building a business that is not only efficient and scalable but also insight-driven and future-ready. These tools empower us to anticipate market trends, optimise our supply chain, and make smarter, faster decisions.”
“Our partnership with Wayfair and the progress of our e-commerce enabler initiative reflects our ambition to not only grow, but to lead. We are laying the groundwork for a thriving ecosystem where innovation, collaboration, and entrepreneurship converge to create value—not just for us, but for the vendors we empower.”
“Ultimately, our commitment is to long-term value creation. We are investing in technology, people, and partnerships that will ensure we remain resilient, adaptive, and ahead of the curve. We believe the future belongs to businesses that are bold in vision and disciplined in execution—and we are proud to be building exactly that.”
