The distribution business continues to be the key growth engine, driving the Group to sustainable growth. Over the years, the Group has steadily built and expanded the portfolio of products represented by 45 established brands. In addition to leading global brands, the Group also markets and distributes its own proprietary brands such as Advanti Racing alloy wheels, Neuton Power batteries and Neuton Power electric buggies.
The distribution business is increasingly contributing a bigger share of Group revenue. For FY2022, distribution revenue reached $323.7 million accounting for 75.1% of total revenue, compared to its 74.1% share in FY2021. This could be attributed to a strengthening of distribution networks, broadening of customer base and improved performance in the energy solutions segment. The revenue of this segment reached $124.7 million in FY2022 compared to $115.7 million in the prior year period, an improvement of 7.7%. The upward trajectory is expected to continue as the Group explores new markets in ASEAN and beyond.
The tyre segment continues to be the mainstay of the distribution business, accounting for 48.4% of the distribution revenue. The tyre brands that the Group carries include Yokohama, Pirelli, Continental, Nitto, Toyo and Nankang, meeting the needs of various niche markets. The energy solutions segment comprising batteries, lubricants, solar panels, chargers, inverters and UPS include brands like Trojan, Vision, Amaron, Rocket, FIAMM, C&D Technologies, U.S. Battery, Panasonic, Elf, delta-q, Eaton and Trinasolar. The revenue from this segment grew 7.7% year-on-year to $124.7 million, accounting for 38.5% of distribution revenue. The wheels segment contributed $42.4 million or 13.1% to distribution revenue, an increase of 6.9% compared to FY2021, attributed mainly to increased demand in Australia.
Within the distribution business, Oceania, comprising mainly Australia and New Zealand, has surpassed ASEAN as the biggest market in FY2022. This market delivered positive growth of 4.8% from $137.5 million in FY2021 to $144.0 million in FY2022 due to the Group’s success in emerging stronger from the pandemic by strengthening distribution networks, increasing marketing efforts, expanding the customer base and capitalising on increased demand for its products across the board arising from the easing of travel restrictions. The USA market also achieved positive growth 11.3% from $20.0 million in FY2021 to $22.3 million in FY2022. The ASEAN market recorded revenue of $138.4 million, down 3.9% from $144.1 million in FY2021 mainly due to lower tyre sales in Malaysia as a result of the sale of 51% share capital of Yokohama Tyre Sales Malaysia Sdn Bhd (“YTSM”) in January 2022. North East Asia experienced the sharpest drop in distribution revenue of 32.0% to $19.0 million in FY2022, due largely to COVID-19 disruptions in China resulting in sharp decline in demand for tyres.