shopper360's 7% revenue increase contributed by advertising and digital marketing

Shopper360 posted a revenue of RM142.4 million for the financial year ended 31 May 2018 (FY 2018), a 7% increase from RM132.5 million during FY 2017.

According to the financial statement, the increase in revenue can be attributed to the RM0.9 million (2.7%) revenue increase from in-store advertising and digital marketing. The increase in this segment was due to new marketing and creative service offerings in FY 2018, and was partially offset by lower media production revenue as a result of the cautious economic outlook during FY 2018, as well as stretched resources during the set up of a new joint venture company in Myanmar, Gazelle Activation and ShopperPlus businesses.

Meanwhile, revenue from its sampling activities and events management segment dropped by about RM2.3 (12.7%) in FY 2018, due to lower sampling activities by customers. This was in response to a cautious economic outlook during the first half of FY 2018. The decrease was partially offset by revenue from new events and roadshows.

Also, revenue from shopper360's field force management segment increased by approximately RM11.4 million (14.3%) in FY 2018 due to increased support required by current customers as they expand their business scope and coverage.

Shopper360's cost of sales also increased by RM14.0 million (15%) to RM104.4 million in FY 2018. The increase is mainly attributable to third-party costs associated with new businesses in creative and marketing revenues, higher people investment and an operating cost of RM10.0 million to support the business growth in the field force management segment, as well as new events and roadshows in FY 2018.

The financial statement said the company will continue to focus on acquiring new consumers and expanding service offerings with existing ones. Also, it aims to improve operating efficiencies via information technology upgrades, streamline business processes and increasing manpower utilisation. With the establishment of its Myanmar operations, the focus is to scale up and maximise revenue opportunities, embed business processes and seek further growth opportunities in Myanmar.

Shopper360 will also seek business opportunities via strategic partnerships and acquisitions across the current network while reviewing further expansion opportunities into other geographies in the region.

Pos Ad Group rebranded to shopper360 in 2016 to focus on integrated shopper marketing solutions and introduced a new proposition of “selling smarter”. With the rebrand, the company champions shopper and retail insight, planning, creative solutions, data and all the way to implementation.

Shopper360's five shopper-focused agencies are Pos Ad Media, Jump Retail, Paragon Premiums, Shopwave and Tristar Synergy. All of them specialise in retail media, merchandising, premiums, promoter services and mobile solutions. In 2017, it launched two new companies – Gazelle Activation and Shopper+ – to create customised solutions for clients. Among its list of clients include Nestle, F&N Beverage, Fonterra, Samsung, U Mobile, Giant, Cold Storage and AEON.

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