Sedania’s baby care business fuels share price rally

by NUR HANANI AZMAN / pic source: Offspring

SEDANIA Innovator Bhd’s move to expand overseas has fuelled a sharp rally in its share price as the stock hit limit up at close in Tuesday’s trade.

Its share price closed at RM1.20 a share after the company announced its subsidiary, Offspring Inc, is expanding its range of products to Spain, Finland, Cambodia and Korea.

Shareholders have seen a 10-fold rise in value in Sedania’s stakes from its price of 15.5 sen on April 16.

“We received one of the biggest orders from Korea, our highest orders recorded for a new territory. Offspring will be made available on dedicated web stores for each respective country, which is closely monitored by our headquarters team as part of our comprehensive international distribution programme that we have initiated,” Sedania MD Datuk Azrin Mohd Noor noted in a statement on Tuesday.

Certain countries are also using well-known online shopping platforms such as Lazada, Shopee and Amazon to expand their market reach.

The deal allows Offspring to further expand its global presence, adding to its export markets like the US, Singapore, Brunei, Philippines and Russia.

Based on the statistical data from market research conducted by Offspring, total birth rates in the respective countries are estimated to be almost 1.2 million newborns annually and increasing.

“Our prospect of being the premium organic baby brands in the mentioned countries is looking very promising based on the estimated birth rate numbers

“Every baby changes between three and 10 diapers a day and they equally use many wipes, nappy balm, lotion, head-to-toe wash and so on, and we are happy when they continue to use Offspring’s,” he added.

Sedania owns 51% stake in Offspring, a health tech company focusing on early child care solutions, among which produces high-quality organic baby products.

Offspring offers products such as eco-friendly baby diapers, biodegradable wet wipes, baby care essentials and household products that use non-toxic, organic and plant-based ingredients, making the company among the pioneers in organic-based products in the region.

Azrin said the group’s main aspiration has always been to provide the best, effective and safest products to newborn babies, locally and globally.

“This aspiration has become our main driving force in setting footprints in international markets. Tapping into Spain and Finland after the success in Russia has gained us a competitive edge in the European market.

“We are now equipped with a thorough understanding of European market behaviour. Customer behaviour towards organic and eco-friendly products in this market is slightly more mature compared to other markets we ventured into. They are well aware of the importance of using safe and organic ingredients products, especially on newborns.

“Hence, it will not be a challenging task in educating the market there,” he reckoned.

In conjunction with International Earth Day recently, Offspring was listed in top 10 sustainable products by one of the leading magazines in the Philippines.

“It was only recently that Offspring ventured into the Philippine market. Our brand quickly became the household name for organic and sustainable products in the country.

“This simply indicates we are becoming the trusted choice among modern parents who emphasise on their child’s health and safety, and also caring towards Mother Earth,” he concluded.