Webuy Announces Filing of 2023 Annual Report with the SEC, Launches Travel Business in Indonesia, and Expands into Insurance Referral Program

Rhea-AI Summary

Webuy Global (NASDAQ: WBUY) filed its 2023 annual report with the SEC, launched a travel business in Indonesia, and expanded into an insurance referral program. Financially, total revenues increased by 38.4% to US$61.7 million, with key growth driven by Indonesian grocery sales and Singapore tour packages. Gross profit also rose by 38.4% to US$5.1 million. CEO Vincent Xue Bin highlighted the successful market expansion and revenue growth in 2023.

Positive

• Total revenues surged by 38.4% to US$61.7 million in 2023.
• Gross profit increased by 38.4% to US$5.1 million.
• Indonesian grocery sales saw an 83.6% growth, contributing significantly to revenue.
• Sales of tour packages in Singapore doubled from 2022 figures.
• The company expanded into the Indonesian travel market and launched an insurance referral program.
• CEO Vincent Xue Bin emphasized the strategic expansion and revenue growth achieved in 2023.

Negative

• None.

Insights

Financial Analyst

Webuy's announcement of a 38.4% increase in total revenues to $61.7 million signifies a robust year-over-year growth, primarily fuelled by the grocery segment in Indonesia. Their strategic market expansion into travel and insurance sectors suggests an agile adaptation to consumer needs and regional market opportunities. The flat gross margin of 8.3%, despite revenue growth, points towards successful cost management but also indicates a likely increase in variable costs proportional to their revenue growth, a common occurrence in scaling operations. For investors, the important metrics to monitor would be the execution efficiency of these new business lines and the subsequent financial quarters to confirm if the growth trend is sustainable and whether it leads to margin improvement.

Market Research Analyst

The entry into the travel business in Indonesia and the insurance referral program are targeted moves to capture growing markets in Southeast Asia. The 83.6% growth in grocery sales within Indonesia underlines a strong execution of distribution strategies. Investors should observe the region's economic climate, as Southeast Asia's increasing middle class and consumer spending power could further fuel Webuy's growth. It will be important to evaluate how Webuy's diversified portfolio balances its revenue streams against sector-specific risks, such as policy changes or competitive pressures in the travel and insurance industries.

Singapore, April 19, 2024 (GLOBE NEWSWIRE) -- Webuy Global Ltd (NASDAQ: WBUY) ("Webuy" or the "Company"), a Southeast Asian community e-commerce retailer, today announces that on April 15, 2024, the Company filed its 2023 annual report (20-F) with the SEC. Notable recent events include the Company’s launch of a travel business line in Indonesia and expansion into an insurance referral program. Key highlights of the Company’s 2023 financial achievements follow:

2023 Financial Highlights

• Total revenues increased by 38.4% to US$61.7 million from US$44.6 million in the full year of 2022. The increase was mainly driven by sales of groceries in the Indonesian market and demand for the Company’s tour packages in Singapore.
• Gross profit increased by 38.4% to US$5.1 million from US$3.8 million in the full year of 2022. Gross margin was approximately 8.3%, relatively flat compared to 8.4% in the full year of 2022, mainly attributable to the Company’s ongoing efficiency optimization initiatives.

Recent Developments

In early 2024, the Company launched its travel business in Indonesia and expanded its presence in the growing Southeast Asian tourism market.

In April 2024, the Company launched an insurance referral program to deliver insurance solutions to markets across Asia.

Vincent Xue Bin, Chief Executive Officer and Co-Founder of Webuy, commented, "2023 was an important year in which we refined our strategic approach and delivered solid results. Sales of groceries on our platform in Indonesia grew strongly, as demand in the region escalated and our distribution strategies have proven effective. By expanding our footprint, further establishing our presence, and catering to the needs of the market, we grew our total revenues by 38.4%, with sales of groceries in Indonesia increasing by a substantial 83.6%. In addition to grocery sales, we introduced new packaged tour travel services in Singapore, which immediately proved popular with consumers. Revenue generated from tour packages offered in Singapore more than doubled from that of 2022, representing an important diversification of our product offerings. Building on this momentum, we leveraged our robust supply chain network to successfully extend our tour packages into Indonesia, further expanding our presence in the vibrant Southeast Asian tourism market. Additionally, our strategic entry into an insurance referral program during April represents a promising opportunity for higher-margin growth, aligning with our consistent approach to innovation and expansion."

"Our 2023 results stand as a testament to our innovative approach and the resilience of our business model. Furthermore, our stable gross margin underscores our commitment to continuous efficiency optimizations. Looking ahead, we remain steadfast in our dedication to surpassing existing milestones, ensuring unparalleled success for our customers, and consistently delivering enduring value to our shareholders while fostering a strong sense of community engagement."

Annual Report

The Form 20-F can be accessed by visiting either the SEC's website at www.sec.gov or the Company's website at https://www.webuysg.com/Investor/. In addition, the Company's shareholders may receive a hard copy of the Form 20-F, which includes the Company's complete audited financial statements, free of charge by requesting a copy from the Company contact below.

About Webuy Global Ltd

The Company's mission is to make social shopping a new lifestyle for consumers and to empower consumers' purchases with an efficient, cost-saving purchasing model. Webuy is committed to developing a community-oriented e-commerce platform in the Southeast Asia region and transforming the e-commerce model into a community-driven experience for consumers.

The Company's innovative 'group buy' business model is set to revolutionize traditional shopping practices, offering substantial cost savings to customers through a community-centric approach. This approach, akin to group purchases and bulk orders, simplifies the process for customers, eliminating the need for individual bulk purchases. Furthermore, the business model streamlines the traditional supply chain by minimizing the involvement of intermediaries, thereby offering a more direct "farm-to-table" supply model. Additional information about the Company is available at http://webuy.global/.

Forward-Looking Statements

This press release contains forward-looking statements. These statements are made under the "safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company’s goals and strategies; the Company’s future business development; financial condition and results of operations; product and service demand and acceptance; reputation and brand; the impact of competition and pricing; changes in technology; government regulations; fluctuations in general economic and business conditions in U.S., Singapore and Indonesia and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

Contacts

Investor Relations
Robin Yang, Partner
ICR, LLC
Email: Webuy.IR@icrinc.com
Phone: +1 (646) 880-9057

FAQ

What is the ticker symbol for Webuy Global ?

The ticker symbol is NASDAQ: WBUY.

What were the key financial highlights for Webuy Global in 2023?

Total revenues increased by 38.4% to US$61.7 million, and gross profit rose by 38.4% to US$5.1 million.

How much did Indonesian grocery sales grow in 2023?

Indonesian grocery sales grew by 83.6% in 2023.

What did CEO Vincent Xue Bin highlight about Webuy Global 's performance in 2023?

CEO Vincent Xue Bin highlighted successful market expansion and revenue growth in 2023.

Where can shareholders access Webuy Global 's 2023 annual report?

Shareholders can access the Form 20-F on the SEC's website or the Company's website at https://www.webuysg.com/Investor/.