KUALA LUMPUR: Senheng New Retail Bhd reported significant growth in its online sales for the financial year ended Dec 31, 2024 (FY24) and outlined a comprehensive strategy to navigate the retail landscape and drive sustainable growth in 2025.
A key highlight of FY24 was the online sales performance, reaching RM128.3 million, up 54% from RM83.5 million in the previous year.
Senheng’s strategic initiatives enabled the group to partially offset the impact on revenue and profitability from weaker consumer sentiment, as group revenue moderated to RM1.2 billion in FY24 from RM1.3 billion last year. Net profit for FY24 stood at RM12 million compared to RM25.1 million previously in line with the topline performance, and impacted by one-off tax expenses and write-off of fixed assets. Adjusted for the one-off items, the group’s net profit for FY24 would have been RM16.3 million.
For the fourth quarter ended Dec 31, 2024 (Q4’24), Senheng registered revenue of RM308.5 million versus RM358.6 million in the previous quarter due to weaker consumer sentiment. The softer sales, coupled with one-off tax expenses and write-off of fixed assets, resulted in net loss of RM1.5 million compared to net profit of RM7.6 million previously. Excluding the one-off items, the group would have recorded a net profit of RM2.8 million for Q4’24.
Executive chairman Lim Kim Heng said: “While the retail sector continues to face challenges, we are innovating our retail model and investing in growth areas. In 2025, we aim to deepen customer loyalty by enhancing our personalised rewards and broadening our product offerings.”
Beyond electronics, he added they see potential in providing a wide range of solutions that deliver long-term value to consumers such as solar energy and EV charging solutions, in addition to expanding the range of household products under their brand distribution segment.
“Our efforts include enriching our online platforms, as well as digital marketing campaigns and boosting content across media platforms to engage with consumers. These initiatives have translated into improved online contribution, and work synergistically with premium in-store experiences nationwide,” said Lim.
He added they are already seeing positive indicators, with improving customer footfall and sales since early 2025, underscoring the effectiveness of their strategies and reinforcing their positive outlook.
Looking ahead to 2025, Senheng outlined its strategic direction themed Flywheel 1.0, focusing on six key dimensions: profitability, revenue growth, customer loyalty, operational efficiency, customer experience, and competitive advantage.
At the heart of this strategy is a commitment to deepening customer relationships. Senheng is strengthening its PlusOne loyalty programme with new Customer Relationship Management projects to personalise rewards and create a truly rewarding customer journey. The group is also enhancing its S-Coin cashback rewards programme, offering a wider range of redemption options and personalised incentives to provide even greater value and flexibility.
Senheng is refining its brand positioning with the new tagline “My Rewards, My Choice”, offering greater flexibility and value to customers through cashback, warranties, a seamless shopping experience, and multiple payment options.
