KUALA LUMPUR: Senheng New Retail Bhd saw a decline in its net profit by 7.2 per cent to RM60.6 million for its financial year ended Dec 31, 2022 (FY22) from RM65.3 million a year ago on higher operating expenses as well as increased deferred taxation for the year. 

Revenue rose 8.3 per cent to RM1.6 billion from RM1.4 billion in FY21 backed by higher demand for consumer electronics across its retail stores.

For the fourth quarter (Q4), its net profit dipped 32.6 per cent to RM21.0 million from RM31.2 million in Q4 2021, as consumer sentiment impacted retail sales and the group noted higher operating and administrative expenses.

Its revenue marginally dropped 2.7 per cent to RM444.2 million from RM456.4 million in the corresponding quarter the previous year as consumer spending in the country slowed down following the increase in interest rates. 

The company said higher operating expenses during the quarter was also attributed to the increased costs associated with the growth in its new and enhanced stores nationwide, in order to capture more market share in consumer electronics sector under its Territory Champion strategy.

Senheng said it would continue with its accelerated expansion plan in 2023, and would launch a total of 66 new/upgraded stores this year, a significant increase from 16 new/upgraded stores in 2022.

Executive chairman Lim Kim Heng said in addition to opening more physical stores, Senheng continued to upgrade its online shopping channels. 

"Combining the best of Senheng's online and offline personalised customer services, the group aims to be ahead of the curve in the consumer electronics retail sector.

"Our aggressive expansion strategy in 2023 is guided by our belief in opportunities of capturing increased market share even as the market faces headwinds. 

"We also believe in our strong brand equity amongst consumers," said Lim.