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Sedania to expand into sustainable biz after all-time high FY2021 profits

SEDANIA Innovator Bhd looks set to accelerate its expansion into sustainable businesses after posting record high financial results in FY2021.

“In order for Sedania to consistently register growth in our financial performance, we need to step up our efforts to expand our Sustainable segments while playing our part in saving the environment,” justified the company’s founder and managing director Datuk Azrin Mohd Noor.

“We are always on the look-out for business opportunities which may fit into our overall growth strategy.”

The provider of sustainable energy solutions and sustainable healthcare products returned to the black with a net profit of RM599,000 in its 4Q FY2021 ended Dec 31, 2021 from a net loss of RM7 mil a year ago on the back of a 54.8% jump in revenue to RM10.9 mil.

For its entire FY2021, Sedania posted its highest net profit since its listing in 2015 with net earnings of RM8.51 mil, a significant turnaround from a net loss of RM10.23 mil in the previous year.

This was on the back of a 65% year-on-year (yoy) increase in revenue to RM49.10 mil from RM29.74 mil which was driven by stronger sales from its sustainable energy and sustainable healthcare segments which together contributed 87% to the company’s total revenue.

The sustainable energy segment was Sedania’s best performing business with its revenue surging 8.25-fold to RM15.65 mil in FY2021. This division returned to the black with a pre-tax profit of RM7.29 mil in FY2021 as it was able to carry out on-site activities following a prolonged lockdown in 2020.

“It is literally a hot market. Climate change including its constant discussions across board rooms are heating up, and we are overwhelmed by the interest we receive,” noted Sedania’s group CEO Daniel Ruppert.

“Hence, 2022 will see us not only continuing but accelerating our current strategy of investing in our clients’ future energy sustainability.”

Under the sustainable energy segment, Sedania offers its corporate clients a non-capex model via an energy performance contract.

Sedania’s other core business – the sustainable healthcare segment – managed to register a 26.33% yoy rise in revenue to RM27.04 mil in FY2021.

The sustainable healthcare segment which provides eco-friendly preventive healthcare products under the Offspring brand accounted for 55% of the company’s total revenue.

As for contribution to the company’s bottom line, the sustainable healthcare segment showed a 23.14% increase in pre-tax profit to RM5.56 mil.

Offspring became part of Sedania upon completion of its acquisition of a 51% stake in the premium organic and eco-friendly baby brand in January 2021.

At the close of today’s mid-day trading, Sedania was down 1 sen or 2.6% to 37.5 sen with 1.87 million shares traded, thus valuing the company at RM130 mil. – March 1, 2022


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