KUALA LUMPUR (Dec 17): Air fragrance maker Vanzo Holdings Bhd (KL:VANZO), which made its debut on the ACE Market on Tuesday, said there is still ample room for growth in the domestic market.

Commenting on its growth plans, Vanzo managing director Allan Wong Liang Tzer said the company targets to co-formulate with its original equipment manufacturers to launch at least one new scent every year, and aims to release new series of products, with each series having four to five stock keeping units.

It will also open two new kiosks by the first half of 2025, and two more by the first half of 2026.

Nevertheless, Wong declined to reveal any internal target for sales and profit growth during its post-initial public listing press conference.

When asked about concerns that slowing new car sales may dampen its outlook, Vanzo said its current market share of 13% in the car fragrance market still provides ample room for growth, plus the company has ventured out to other product categories such as indoor fragrances, personal and household care products.

For its nine-month financial period ended June 30, 2024, car fragrances made up 77.6% of Vanzo's total sales, followed by indoor fragrances at 21.3%, as well as personal and household care products at 1%.

For the financial year ended Sept 30, 2023 (FY2023), Vanzo posted a profit after tax of RM5.1 million, a 19% increase from RM4.28 million in FY2022, as revenue grew at a similar pace to RM40.86 million from RM33.97 million.

Vanzo’s initial public offering (IPO) price was 15 sen per share, valuing the company at a price-earnings ratio of 13 times.

At 5pm, Vanzo shares closed at 16.5 sen, up 1.5 sen from its IPO price. 

Currently, the company does not plan to set up its own manufacturing lines and will continue to work together with its three original equipment manufacturers, whose factories are abroad.

Thus far, it does not foresee any risks from fluctuations of raw materials as they have been quite stable.

The company does not have a formal dividend policy.

Vanzo mainly designs and sells car air fragrance and related products ranging from air fresheners to scented candles to supermarkets and convenience stores. It also markets complementary fragrance-related products, such as candle tool sets, rechargeable electric lighters, and anti-slip car mats.

The company currently has six retail kiosks, with five located in shopping malls in Klang Valley and one in Kuching, Sarawak.

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