KUALA LUMPUR (Oct 31): Education material publisher Sasbadi Holdings Bhd posted a net loss of RM4.23 million in its fourth quarter ended Aug 31, 2017 (4QFY17) — its first quarter in the red since the company's market debut on July 23, 2014 — as its publishing units posted lower revenue.

In comparison, the group recorded a net profit of RM4.18 million a year ago.

In its quarterly report to Bursa Malaysia, Sasbadi said the losses were due to lower topline contribution from its academic publishing subsidiaries, Sasbadi Sdn Bhd and Malaysian Book Promotions Sdn Bhd.

Revenue for the quarter fell 16% year-on-year to RM12.99 million from RM15.39.

Apart from lower revenue, Sasbadi also incurred higher operating cost during the quarter under review, mainly due to the consolidation of United Publishing House (M) Sdn Bhd’s financial results, impairment loss on trade receivables, and higher interest expense due to higher gearing.

In August last year, Sasbadi spent RM4.35 million to acquire United Publishing.

Consequently, the group's full FY17 net profit was down 52% y-o-y to RM8.04 million, compared with RM16.7 million in FY16, though revenue inched up 0.4% to RM93.06 million from RM92.69 million.

Despite the poorer results, Sasbadi remains positive about its prospects in FY18.

The group said it will continue to capitalise on the government’s agenda with regards to science, technology, engineering and mathematics and smart classroom solutions by using the group’s existing and expanding digital solutions, technological know-how, and advanced learning tools and products.

In addition, Sasbadi said it will continue to explore opportunities for synergistic collaborations with third parties in other markets which have similar drive and agenda.

“The group will also continue to pursue growth in its market share of the direct users market via its direct sales and network marketing business,” it said.

Meanwhile, in anticipation of the continued weak retail market conditions, Sasbadi said it is stepping up its efforts to grow the non-academic segment by streamlining and leveraging its resources to maximise efficiency, both in terms of cost and operations.

Sasbadi’s share price slid one sen or 1.18% to 84 sen today, giving it a market capitalisation of RM352.04 million.