SEERS BERHAD Navigates Headwinds: A Deep Dive into Their Latest Financials (30 June 2025)
As a seasoned observer of the Malaysian market, I’m always keen to peel back the layers of company reports. Today, we’re focusing on SEERS BERHAD, a company listed on the LEAP Market of Bursa Malaysia. For those unfamiliar, the LEAP Market is designed for sophisticated investors, reflecting a potentially higher investment risk than other market segments. SEERS BERHAD has just released its unaudited half-yearly financial statements for the financial year ended 30 June 2025, and the report paints a picture of a company facing significant market challenges while actively strategizing for future growth.
The core message from this report is clear: SEERS BERHAD is navigating a challenging economic landscape, with a noticeable decline in revenue and an increase in net losses for the cumulative 12-month period. However, it’s not all grim; the company is actively pursuing new strategies, including product innovation and market expansion. Let’s delve into the numbers to understand the forces shaping their journey.
Understanding the Financial Headwinds: Performance Overview
SEERS BERHAD’s latest financial report highlights a period of significant contraction, particularly when looking at the cumulative 12-month performance. While the six-month period showed some resilience in managing operational losses, the broader trend indicates increasing pressure on the top and bottom lines.
Revenue and Profitability – Six Months Snapshot
For the individual six months ended 30 June 2025, the Group’s revenue saw a dip, primarily due to softer market demand affecting key product segments. Despite this, they managed to slightly reduce their pre-tax loss compared to the same period last year, a small silver lining amidst broader challenges.
Latest 6 Months (30.06.2025)
Revenue: RM1,876k
Loss Before Tax: (RM889k)
Loss for the Period: (RM999k)
Basic Loss Per Share: (0.38) sen
Previous 6 Months (30.06.2024)
Revenue: RM2,136k
Loss Before Tax: (RM918k)
Loss for the Period: (RM753k)
Basic Loss Per Share: (0.29) sen
Compared to the same six months last year, revenue decreased by RM260k, or 12.17%. While the loss before tax improved slightly by RM29k (3.16%), the loss for the financial period widened by RM246k, or 32.67%, primarily due to a significant income tax expense this period, contrasted with an income tax credit last year.
Cumulative 12-Month Performance Reveals Deeper Challenges
The cumulative 12-month results, however, tell a more challenging story. Both revenue and profitability metrics show a significant decline, indicating a persistent pressure on the Group’s financial performance over the longer term.
Latest 12 Months (30.06.2025)
Revenue: RM4,170k
Loss Before Tax: (RM1,305k)
Loss for the Financial Year: (RM1,507k)
Basic Loss Per Share: (0.58) sen
Previous 12 Months (30.06.2024)
Revenue: RM5,668k
Loss Before Tax: (RM317k)
Loss for the Financial Year: (RM332k)
Basic Loss Per Share: (0.13) sen
Over the cumulative 12-month period, revenue fell by a substantial RM1,498k, a 26.43% decrease. This directly impacted the bottom line, with the loss before tax swelling by RM988k, a concerning 311.67% increase. The net loss for the financial year escalated by RM1,175k, or 353.92%, with basic loss per share increasing significantly to (0.58) sen from (0.13) sen.
Gross Profit Margin Under Pressure
The Group’s gross profit margin for the cumulative 12-month period also saw a marginal decline from 70.55% to 68.15%. This was attributed to a significant 26.46% drop in revenue, coupled with a higher proportion of sales made to franchisees at lower prices. Although the cost of sales also decreased, it did not proportionately match the decline in revenue, thus squeezing the margins.
Segmental Performance: A Mixed Bag
The report provides a breakdown of revenue by product segment, revealing mixed performance across the Group’s offerings for the latest six months:
| Product Segment | 6 Months Ended 30.06.2025 (RM’000) | 6 Months Ended 30.06.2024 (RM’000) | Change (RM’000) | Percentage Change |
|---|---|---|---|---|
| Health Products | 978 | 809 | +169 | +20.89% |
| Appliance Products | 892 | 1,203 | -311 | -25.85% |
| Medical Goods | 6 | 124 | -118 | -95.16% |
Health Products showed a healthy growth of nearly 21%, contributing over 52% of the total revenue for the period. However, Appliance Products experienced a significant slowdown, primarily due to lower sales of storage heaters amidst an overall market demand slump, impacted by higher fuel prices affecting major developers. The Medical Goods segment saw a sharp decline, indicating a substantial shift or challenge in that area.
Geographically, while local revenue for the six months decreased by 23.40%, overseas revenue saw an impressive increase of 309.72%, rising from RM72k to RM295k, mainly from countries like the Philippines. For the cumulative 12 months, overseas sales contributed 9.35% of total revenue, amounting to RM0.39 million.
Financial Health Check: Balance Sheet and Cash Flow
A look at the balance sheet as of 30 June 2025 shows a contraction in total assets from RM5,964k to RM5,743k. More notably, total equity significantly decreased from RM2,587k to RM1,080k, primarily due to the accumulation of losses. This also led to a significant increase in total liabilities, from RM3,377k to RM4,663k, driven by higher current liabilities.
Cash flow from operating activities remained positive for the cumulative 12 months, generating RM821k (down slightly from RM904k previously). The Group also significantly reduced cash used in investing activities. However, the overall cash and cash equivalents remained negative at (RM1,016k), largely due to substantial bank overdrafts (RM1,181k), highlighting a tight liquidity position.
Strategic Response: Risks and Prospects
SEERS BERHAD acknowledges the challenging environment, citing “soft business sentiment” in both local and overseas markets due to geopolitical tensions (like the Ukraine-Russian conflict) impacting global supply chains. Higher fuel prices are also increasing costs for major industry players.
Despite these headwinds, the Group is not standing still. Their strategy revolves around several key pillars:
- Continuous Innovation: Commitment to developing new products.
- Market Expansion: Expanding presence in Sabah.
- Product Enhancement: Improving existing range of products and health-related services, including skincare and wellness offerings, to maintain competitiveness.
- Digital Marketing: Boosting brand visibility through online advertising and collaboration with social media influencers to strengthen its position in the retail segment.
- Branch Operations: Planning to expand branch operations in Tawau, which is expected to positively contribute to medical product sales and overall performance.
These initiatives reflect a proactive approach to mitigate risks and capitalize on emerging opportunities, aiming to build resilience and drive future growth despite the current macroeconomic challenges.
Summary and Investment Considerations
SEERS BERHAD’s latest financial report for the half-year ended 30 June 2025, and the cumulative 12-month period, clearly illustrates the significant challenges the company is facing. The sharp decline in revenue and the widening losses, particularly over the past year, demand close attention. The contraction in equity and the negative cash and cash equivalents position indicate a strained financial health that needs careful monitoring.
However, it is also important to consider the strategic measures the company is putting in place. The growth in health products and overseas revenue, coupled with plans for product innovation, digital marketing, and regional expansion in Sabah and Tawau, demonstrate a proactive stance to adapt to the adverse market conditions. These initiatives are crucial for the Group to navigate the current headwinds and potentially return to a path of sustainable growth.
Key points for readers to consider:
- The significant increase in cumulative 12-month net losses and loss per share.
- The decline in gross profit margin due to lower revenue and a shift in sales mix.
- The negative cash and cash equivalents position, mainly due to bank overdrafts, highlighting liquidity concerns.
- The strategic focus on new product development, digital marketing, and market expansion in Sabah and Tawau as counter-measures to challenging market sentiment.
- The impact of higher fuel prices and global supply chain disruptions on overall market demand.
In my view, SEERS BERHAD is at a critical juncture. The market conditions are undoubtedly tough, but their articulated strategies suggest a clear understanding of the challenges and a determined effort to pivot and innovate. The success of these initiatives will be key in determining their future trajectory.
Given the challenging market conditions and the strategic initiatives being undertaken, do you believe SEERS BERHAD’s focus on product innovation and regional expansion will be sufficient to improve its financial performance in the next few years?
Share your thoughts and insights in the comments section below! For more in-depth analyses of Malaysian companies and market trends, keep an eye on our blog.
