WBUY · WEBUY GLOBAL Ltd. Ordinary Shares

WEBUY GLOBAL Ltd. executed its strategic shift away from low-margin grocery operations during FY2025, resulting in revenue of $18.8 million, a 67.7% decline from $58.3 million in FY2024. This contraction reflects the intentional transition, particularly in Indonesia, with low-margin grocery activities discontinued. Partially offsetting this was growth in higher-margin travel-related services, including packaged tours, aligning with the company's focus on scalable, marketing-driven models.

Gross profit decreased 47.0% to $2.3 million in line with lower revenue volume. However, gross margin expanded to 12.0%, driven by a higher mix of packaged tour services—which carry more favorable margins than other offerings—and improved cost management and pricing discipline as travel operations scaled. Procurement, inventory handling, and direct costs associated with discontinued grocery activities declined significantly after disposal, eliminating inventory purchases, warehousing, and logistics expenses. This shift indicates enhanced operational efficiency and a more favorable business mix within continuing operations.

Operating income improved 24.7% to a loss of -$6.6 million from -$8.8 million prior year, with operating margin at -35.1%. The narrowing loss occurred despite revenue pressure, as grocery cost eliminations outweighed increased selling and distribution expenses. These expenses rose due to enhanced digital marketing and customer acquisition investments to support travel segment growth, alongside branding and promotional activities. This reflects the company's strategic pivot to a more marketing-driven model emphasizing digital channels.

Net income deteriorated 29.0% to a loss of -$8.5 million from -$6.6 million, with diluted EPS at -$6.03 versus -$0.10. The wider loss stemmed from higher general and administrative expenses, primarily additional expected credit loss provisions on trade and other receivables—including supplier advances—due to aging balances and recoverability uncertainty. Certain one-off charges also contributed, though partially offset by favorable foreign exchange movements and cost controls.

Cash flow from operating activities showed improvement, using -$2.9 million versus -$7.0 million prior year. This reflects working capital efficiencies post-grocery wind-down, with significant reductions in costs tied to discontinued operations. Overall, FY2025 marked a transitional period where strategic exits reduced top-line scale but improved loss metrics and positioned the business toward higher-margin travel services, amid investments in growth drivers and provisioning for credit risks.