PETALING JAYA: Education book publisher Sasbadi Holdings Bhd’s net profit for the third quarter ended May 31, 2023 (Q3 FY2023) jumped 127% to RM4.61 million from RM2.03 million in the same quarter a year ago.
The robust growth was mainly driven by a 51.78% rise in revenue to RM29.4 million in Q3 compared to RM19.37 million the previous year.
For the first nine months of its financial year, net profit soared by 276.92% to RM11.66 million from RM3.09 million in the corresponding period a year ago.
In a filing with Bursa Malaysia today, Sasbadi attributed the strong earnings momentum to the print publishing division which reported strong sales of academic publications, and contracts secured from the ministry of education (MoE).
The contracts were to supply digital solutions in line with the common European framework of reference for languages (CEFR) Year 1 and Year 3, and the supply of reprinted textbooks to schools under the MoE.
“We are delighted with our performance in this quarter as our revenue and profit have outperformed pre-Covid-19 levels.
“We have continued to stay ahead of the curve by offering innovative publications, including digital solutions, to ensure enhanced teaching and learning experiences,” said group managing director Law King Hui in a separate statement.
He also said the group’s robust logistics and supply chain capabilities ensure timely delivery to accommodate high sales volume.
Partnership with Shopee
Going forward, Sasbadi has entered into a strategic partnership with e-commerce giant Shopee.
This partnership will see Shopee earmarking up to RM50 million from July 1, 2023 to Feb 29, 2024, assisting students in acquiring Sasbadi publications. The collaboration aims to bolster sales while also supporting underserved communities.
Additionally, Sasbadi has partnered exclusively with BOOKR Kids, an education tech company from Europe to market its products across Malaysia.
On April 18, the group announced a potential acquisition of intellectual properties from Integra Creative Media Sdn Bhd, a publisher of children’s books under the Oyez!Books brand.
The merger and acquisition (M&A) initiative is part of its strategy to drive growth for Q4 FY2023 and beyond.
Law was optimistic about Sasbadi’s prospects, adding it was targeting higher growth through diversification of product offerings.