KUALA LUMPUR (Sept 19): Softer consumer demand in the first quarter ended July 31, 2024 (1QFY2025) had sent SSF Home Group Bhd’s (KL:SSF) net profit down by more than half compared with the same quarter a year ago.

In 1QFY2025, SSF recorded a net profit of RM1.25 million, compared with RM2.65 million in the corresponding quarter. The group's revenue dropped by 18.5% to RM32.03 million from RM39.31 million in the same period last year.

On a quarter-on-quarter basis, SSF’s revenue fell by more than a third, or RM18.54 million, from the preceding quarter’s revenue of RM50.56 million. The higher revenue in the previous quarter was attributed to the seasonal boost from Chinese New Year and Hari Raya Aidilfitri celebrations.

Despite operating in what it terms a challenging economic environment, SSF Home has continued with its expansion plans. In August 2024, the group opened a new outlet in Danga Utama, Johor Bahru, bringing the total number of outlets nationwide to 43.

“This strategic growth, supported by the improving retail landscape and increased consumer purchasing power, positions the group for sustained success in the retail market,” SSF said in a statement.

This expansion strategy is in line with SSF’s belief in the long-term potential of the retail market, supported by an improving retail landscape and a favourable consumer spending outlook.

Looking ahead, SSF Home remains cautiously optimistic, though it acknowledges the downside risks stemming from geopolitical tensions and slower growth in major economies.

It expects the economy to benefit from global tech upcycles, increased tourist spending, and ongoing investments from multi-year projects, but remains mindful of the headwinds facing the broader market.

At the close of trade, SSF’s shares were down half a sen or 1.41% at 35 sen, valuing the group at RM280 million.