SECTION 2: OUR STRATEGIC CONTEXT 24 SEGMENTAL REVIEW OF FINANCIAL PERFORMANCE The retail segment experienced a 9.2% year-on-year revenue growth compared to FYE2022, with a robust three-year Compound Annual Growth Rate (“CAGR“) of 21.8%. This growth was primarily driven by the strategic expansion of retail outlets in several locations, enhancing accessibility and convenience for golfers. The golf-related services segment witnessed a 67.5% increase in revenue compared to FYE2022, driven by golf events and tournaments, including a professional tournament. Additionally, revenue from the indoor golf segment saw a rise of 50.7% compared to FYE2022. This growth was attributed to the successful establishment of our new indoor golf facilities, with notable expansions in FYE2023 including Malaysia outlets at Gurney Paragon Mall in Penang, Toppen Shopping Centre in Johor and our first outlet in Indonesia at La Piazza, Summarecon Mall Kelapa Gading, Jakarta. The wholesale segment recorded a revenue decline of 11.2% compared to FYE2022. Despite this, the segment has demonstrated an upward trajectory when seen over the longer term with a three-year CAGR of 34.1%. The decline in the wholesale segment for the FYE2023 was primarily due to customers in Indonesia were more cautious buying in post-Covid year and with anticipation of MST Golf entering the retail market in Indonesia. Malaysia's operation remains as the primary revenue contributor for MST Golf, showcasing a steady revenue growth of 4.9% compared to FYE2022. The growth was primarily contributed by full-year operation of the stores opened in FYE2022 and new stores opened in FYE2023. Our 3-in-1 retail concept, which comprises golf retail, golf academy and indoor golf, drew more traffic into retail stores, thus contributing to overall revenue growth. The revenue contribution from Singapore's operation stems from a mix of retail and wholesale business, serving both domestic and overseas markets. In FYE2023, the Singapore market achieved a 14.5% revenue growth, resulting from the full-year of operation of the two key stores opened in FYE2022 gaining market share in Singapore. Recognising the immense growth potential in Indonesia, MST Golf plans to intensify its market presence by opening more stores in the upcoming years, aiming to establish a significant foothold and solid positioning within the Indonesian market. MANAGEMENT DISCUSSION & ANALYSIS Revenue by Business Segment (RM’000) Revenue by Geographical Operations (RM’000) Retail Wholesale Golf-Related Services Indoor Golf Malaysia Singapore Indonesia 263,556 42,091 14,008 241,308 200,112 100,763 47,374 8,361 11.2% YoY 9.2% YoY 4.9% YoY 14.5% YoY 67.5% YoY 50.7% YoY 5,776 3,832 209,915 115,363 153 2022 2023 2022 2023
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