Shopper360 Limited: FY2025 Financial Analysis & Key Takeaways

Shopper360 Limited has published its audited financial statements for the year ended 31 May 2025. In this article, we break down the key financial metrics, highlight material variances, and summarize important corporate developments that may influence investor decisions.

Key Financial Metrics

Note: The report does not provide prior year or prior quarter figures, so YoY and QoQ analysis is not possible. The table above focuses on material variances between the audited and unaudited FY2025 results.

Material Variances and Errors/Inconsistencies

The audit process led to several reclassifications and adjustments. Key highlights include:

• Reclassification of RM527,916 from retained earnings to profit or loss, relating to loss of deconsolidation of subsidiary, shopperplus Myanmar Co., Ltd.
• Reclassification of investment in Marvel Distribution Sdn. Bhd. (an associate) from current assets to non-current assets.
• Administrative expenses, reversal of impairment losses, other operating and other expenses were adjusted by immaterial amounts.
• No changes in total assets, equity, or liabilities after audit adjustments.

Exceptional Earnings or Expenses

• Loss on Deconsolidation of Subsidiary: A charge of RM1,559,225 was recognized for the deconsolidation of shopperplus Myanmar Co., Ltd.
• Fair Value Losses: RM8,742,041 recognized as a fair value loss for financial assets at fair value through profit or loss.
• Other Expenses: Adjusted down by RM588,593 due to reclassification and recognition of liquidation-related losses.

Chairman’s Statement

The Chairman, Chew Sue Ann, issued the following statement:

“Shareholders and potential investors of the Company are advised to exercise caution when dealing in the shares of the Company. When in doubt as to the action they should take, shareholders and potential investors are advised to consult their stockbrokers, bank managers, accountants, solicitors or other professional advisers.”

Tone: The statement is cautious and neutral, suggesting the management recognizes prevailing uncertainties and risks facing the company.

Corporate Actions, Divestments, and Events Impacting Performance

• Deconsolidation and liquidation of shopperplus Myanmar Co., Ltd. negatively impacted the profit and loss statement.
• Cessation of business operations in Marvel Distribution Sdn. Bhd., prompting asset reclassification.
• No mention of share buybacks, new fundraising, asset sales, or major legal/policy events.

Historical Performance Trends

The report does not provide prior year or prior quarter figures, limiting analysis of historical growth rates or performance trends. However, the continued recognition of large losses and fair value write-downs flags a period of financial stress.

Conclusion & Investment Recommendations

Performance and Outlook: Shopper360 Limited’s FY2025 results reveal significant net losses, driven by exceptional expenses including subsidiary deconsolidation and asset write-downs. The cautious tone from management and absence of any positive outlook or proposed dividend suggest ongoing operational and strategic challenges.

If You Are Currently Holding This Stock:

• Exercise caution: The company faces substantial losses and restructuring costs.
• Consider reviewing your position in light of persistent negative earnings and lack of dividend payout.
• Monitor upcoming announcements for any sign of operational turnaround or strategic initiatives.

If You Are Not Currently Holding This Stock:

• Adopt a wait-and-see stance: Current financial results do not support a bullish entry.
• Seek clarity on future business strategy, profitability restoration, and dividend policy before investing.
• Look for improved financial discipline and evidence of turnaround in subsequent reports.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should consult a qualified professional and consider their own risk tolerance and objectives before making any investment decisions.

View Shopper360 Historical chart here