Vanzo’s Q3 FY2025 Results: Steady Profits Fuel Ambitious Overseas Expansion
Malaysia’s leading air fragrance brand, Vanzo Holdings Berhad, has just released its financial results for the third quarter ended June 30, 2025. The report reveals a story of resilience and strategic foresight. While revenue saw a slight moderation, the company maintained firm profitability, demonstrating strong operational control. More excitingly, Vanzo is officially embarking on its international growth journey, with significant moves into Taiwan and Vietnam. Let’s dive into the details.
Core Data Highlights: A Resilient Quarter
In its third quarter, Vanzo showcased its ability to navigate the market effectively, delivering a solid performance. The numbers reflect a business with strong fundamentals, supported by robust demand for its fragrance and household care products.
Q3 FY2025 Key Financials
- Revenue: RM16.35 million
- Profit Before Tax (PBT): RM2.11 million
- Profit After Tax (PAT): RM1.53 million
- Earnings Per Share (EPS): 0.33 sen
Quarter-on-Quarter (QoQ) Performance
When compared to the immediate preceding quarter (Q2 FY2025), the latest results show a moderation in top-line figures, which subsequently impacted profits. The company attributes this to a general slowdown in revenue during the period, yet it successfully maintained profitability.
Q3 FY2025 (Current Quarter)
- Revenue: RM16.35 million
- Profit Before Tax: RM2.11 million
- Profit After Tax: RM1.53 million
Q2 FY2025 (Preceding Quarter)
- Revenue: RM19.35 million
- Profit Before Tax: RM3.51 million
- Profit After Tax: RM2.55 million
Year-to-Date Performance: The Bigger Picture
For the nine-month period ending June 30, 2025, Vanzo reported a revenue of RM47.67 million. The profit after tax stood at RM0.45 million. It’s important for investors to note that this figure includes one-off listing expenses of RM2.88 million. After adjusting for these non-recurring costs, the normalised profit after tax for the period is a much healthier RM3.33 million, which better reflects the core operational strength of the business.
Financial Health Check: A Strengthened Balance Sheet
Following its listing on the ACE Market in December 2024, Vanzo’s financial position has significantly improved. The company now boasts a stronger balance sheet with increased cash reserves and reduced borrowings, providing a solid foundation for its expansion plans.
| Balance Sheet Item | As at 30 June 2025 (RM’000) | As at 30 Sep 2024 (RM’000) |
|---|---|---|
| Total Assets | 34,108 | 26,991 |
| Total Equity | 25,885 | 13,156 |
| Total Liabilities | 8,223 | 13,835 |
| Cash and Bank Balances | 5,854 | 1,625 |
| Net Assets Per Share (RM) | 0.06 | 0.03 |
Risk and Prospect Analysis: Charting the Course for Growth
Vanzo is not just resting on its local success. The management has laid out a clear and ambitious roadmap for the future, centered on international expansion and product innovation.
Key Growth Prospects
- Taiwan Expansion: In a major milestone, Vanzo products will be available in 500 Watsons outlets across Taiwan starting September 2025. This provides immediate access to a large and established consumer market.
- Vietnam Venture: The company is finalising an agreement to acquire a 70% stake in Vanzo Viet Nam Company Limited (VVCL), establishing a direct foothold in another key Southeast Asian market.
- Product Innovation: Vanzo continues to refresh its product line, having successfully launched new series like the Smart Car Diffuser and licensed Disney products. More launches are planned to capture a wider audience.
- New Revenue Streams: The Group is actively exploring recurring B2B revenue opportunities to create more stable and predictable income sources for the long term.
Potential Risks to Monitor
While the outlook is positive, investors should remain aware of potential challenges. These include the execution risks associated with entering new international markets, navigating different consumer preferences, and managing the competitive landscape in the fragrance industry. Sustaining revenue growth momentum will also be a key area to watch.
Returning Value to Shareholders
Reflecting its commitment to shareholders, Vanzo paid a single-tier interim dividend of 0.2 sen per ordinary share on June 24, 2025. No new dividend has been proposed for the current quarter under review.
Summary and Investment Recommendations
Please note, the following is a summary of the report’s key points and should not be construed as financial or investment advice. Vanzo’s Q3 FY2025 results demonstrate a company with resilient core operations and a clear vision for growth. Despite a sequential dip in revenue, profitability remains intact. The strategic expansion into Taiwan and Vietnam marks a pivotal step in transforming Vanzo from a local champion into a regional player. Its strengthened financial position post-IPO provides the necessary fuel for this ambitious journey.
Key points for investors to consider moving forward:
- The successful execution and market reception of its entry into Taiwan and Vietnam.
- The impact of new product launches on driving future revenue growth.
- The company’s ability to reverse the recent revenue moderation and return to a growth trajectory.
- Progress on the development of new recurring B2B revenue streams.
Final Thoughts
From a professional standpoint, Vanzo’s Q3 report paints a picture of a company in a strategic transition. While the sequential revenue dip warrants attention, the underlying profitability and bold moves into international markets present a compelling narrative. The strengthened balance sheet is a critical asset, providing a solid foundation to support these growth ambitions.
Now, I turn it over to you. Do you think Vanzo can successfully replicate its Malaysian success in the competitive markets of Taiwan and Vietnam? Share your views in the comments below!
