Radiant Globaltech to grow supplier base online

by FARA AISYAH / pic by TMR FILE PIX

RADIANT Globaltech Bhd aims to grow the supplier base of its retail management portal, AX Retail B2B, to 5,000 suppliers by end-2020 from 3,500 in 2019, supported by rising demand from retailers as more businesses resume operations during the Recovery Movement Control Order (RMCO).

Its MD Paul Yap Ban Foo (picture) said the group has seen an increasing number of enquiries as Covid-19 has altered the retail landscape and prompted retailers to reduce reliance on manual processes while maintaining operating efficiency.

“In the first quarter (1Q20) alone, we recorded a total of 3,850 registered suppliers, and are expecting to reach 5,000 suppliers by end-2020.

“Going forward, our main focus is to expand our software division within the retail sector in Malaysia,” he said at a virtual press conference yesterday.

He added that the group is still expanding its software team due to increased interest in the AX Retail B2B portal.

The retail technology solutions firm is looking to add more notable retailers from supermarkets, hypermarkets, departmental stores and convenience stores into the retail management portal.

Customers on its portal today include suppliers from 7-Eleven Malaysia Holdings Bhd, Parkson Holdings Bhd, Aeon TopValu Malaysia Sdn Bhd, Sogo (KL) Department Store Sdn Bhd, MPH Group Malaysia Sdn Bhd and Manjaku Baby Centre Sdn Bhd.

The AX Retail B2B portal currently contributes around 15% to Radiant Globaltech’s total revenue, Yap said.

He added that the group “strongly believes” it can achieve its revenue target and maintain positive revenue this year, despite disruptions from the Covid-19 pandemic.

In 1Q20, Radiant Globaltech’s net profit plunged 96.3% to RM21 million from RM569 million last year, mainly due to business losses attributable to the newly incorporated subsidiary in Thailand and higher staff costs in the software segment.

Quarterly revenue, however, increased 2.3% from RM13.82 million in 1Q19 to RM14.14 million this year, of which RM11.72 million was contributed by the hardware and maintenance segment and RM2.42 million from the software segment.

Revenue contribution from the software division has been on an uptrend from 2016 at RM7.1 million to RM15.9 million in 2019, with a three-year compounded annual growth rate of 30.8%.

“Our retail software solutions are able to support physical retailers and e-commerce platforms, allowing us to capture the uptrend of online shopping,” Yap said.

He said the firm is still on the lookout for hardware contracts and is well-positioned to ride the eventual rebound wave of the retail sector in South-East Asia.