SECTION 2: OUR STRATEGIC CONTEXT 30 BUSINESS REVIEW a) Retail The retail segment remains the Group’s core business. In 2024, revenue grew by 5.4%, largely driven by our expansion into Indonesia. We opened our first store on 26 December 2023, followed by four (4) additional stores in 2024. As of 31 December 2024, the Group operated a total of 54 stores, comprising 41 stores in Malaysia, 8 in Singapore, and 5 in Indonesia. Overall, the retail segment witnessed a three-year Compound Annual Growth Rate (“CAGR”) of 7.3%. Revenue from Indonesia amounted to RM32.27 million, a strong performance considering the Group's inaugural year in this market. However, revenue contribution from Indonesia was offset by sales declines in Malaysia and Singapore, driven by weak retail sentiment and stagnant retail footfall to our stores. The decline was most apparent in the Equipment category, which had peaked post-COVID in 2022. As golfers typically replace their equipment every 3 to 5 years, the demand softened in 2024. Although average selling prices for all product categories including Equipment, Accessories and Apparel increased in 2024, however, the reduced sales of Equipment which have higher average selling price than Accessories and Apparel resulted an overall lower average bill size across the Group (excluding Indonesia). Our e-commerce revenue experienced a strong growth of 26.2%, driven in part by the commencement of our Singapore e-commerce operations in January 2024. We continued to invest in our e-commerce platform to provide golf enthusiasts with a comprehensive and seamless online shopping experience, expanding our e-commerce platform to Malaysia and now Singapore. We believe that our regional retail expansion strategy into new and potential markets such as Indonesia, Thailand and Vietnam will support the continued positive trend of revenue growth. Retail revenue RM277.66mil No. of Retail Stores 54 stores MANAGEMENT DISCUSSION & ANALYSIS Group Revenue by Country (RM'000) 200,000 150,000 100,000 50,000 0 Malaysia Singapore Indonesia 209,915 202,178 115,366 93,230 153 32,367 2023 2024
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