PETALING JAYA, 25 FEBRUARY 2025 – Sunzen Group Berhad (“Sunzen” or “the Group”), formerly known as Sunzen Biotech Berhad and an established player in Malaysia’s health products, medical devices and services, and loan financing with a diversified portfolio, has posted a 236.4% quarter-on-quarter (“QoQ”) surge in profit before tax (“PBT”) for the second quarter ended 31 December 2024 (“Q2 FY2025”), underscoring the success of its strategic shift towards high-margin businesses.
The Group reported RM27.35 million in revenue for Q2 FY2025, marking a 19.1% QoQ increase from RM22.96 million in the previous quarter. PBT rose sharply to RM2.89 million from RM0.86 million in Q1, primarily driven by strong growth in the Human Health segment, new contributions from the Medical Devices and Services Segment, and sustained Loan Financing earnings. For the six-month period ended 31 December 2024 (“6M FY2025”), revenue totalled RM50.31 million, with a PBT of RM3.75 million.
As the Group had changed its financial year-end from 31 December to 30 June in 2024, there are no corresponding year-on-year (“YoY”) comparisons available.
Segmental wise, the Human Health segment remained Sunzen’s largest revenue driver, generating RM20.96 million in Q2, a 31.95% increase QoQ. This growth was fueled by higher edible bird’s nest exports to China, which accounted for 57.45% of the segment’s sales, and stronger local demand for health supplements and traditional Chinese medicine, particularly during the festive season. The segment posted a PBT of RM0.73 million in Q2, reversing a weaker Q1 performance. However, on a YTD basis, the segment still recorded a marginal loss before tax of RM0.12 million due to lower profit margins in the preceding quarter.
The Loan Financing segment continued its strong profitability, contributing RM3.19 million in revenue for Q2. While this was slightly lower than the RM3.27 million in Q1, the division remained highly profitable, delivering a PBT of RM2.90 million in Q2 and RM5.85 million YTD.
The Medical Devices and Services segment, acquired in October 2024, made its first contribution, adding RM2.44 million in revenue and RM0.40 million in PBT for the current quarter. The positive initial results from Sunzen’s ophthalmic medical products business reinforce the Group’s strategic expansion into the fast-growing healthcare sector.
Following Sunzen’s strategic exit from the Animal Health segment, revenue for the division declined 83.07% QoQ from RM2.04 million in Q1 to RM0.75 million in Q2, as operations wound down before the divestment’s completion. The segment continued to post losses, with a loss before tax of RM1.14 million in Q2 and RM2.38 million YTD. The RM17.3 million disposal SPA agreement signed in February 2025, eliminates a drag on financial performance of the group and frees up resources for higher-growth areas.
Group Managing Director of Sunzen Group Berhad, Mr. Teo Yek Ming commented, “Our success in Q2 FY2025 reflects the impact of our strategic realignment. Exiting loss-making businesses while expanding in high-growth sectors has allowed us to optimise our focus and improve profitability. The divestment of our Animal Health segment has not only strengthened our balance sheet but has also enhanced our cash reserve by RM17.3 million, giving us additional flexibility to scale our core businesses, including the newly acquired ophthalmic medical devices segment.”
“At the same time, we are actively navigating the recent disruptions in our edible bird’s nest exports to China, which temporarily impacted our supply chain due to regulatory restrictions. While exports resumed in mid-January, we are proactively strengthening compliance measures and exploring new markets to mitigate future risks. This strategic approach ensures resilience in our health and wellness business while positioning us for sustainable long-term growth,” he added.
Sunzen continues to leverage its strengths in Health products, medical devices and services, and loan financing services, expanding into high-potential markets while maintaining a disciplined approach to growth and profitability.
