Fiamma’s 2Q net profit rises 15.9% as revenue jumps 41.5%

PETALING JAYA (Aug 24): Fiamma Holdings Bhd’s net profit rose 15.9% year-on-year to RM16.17 million for the second quarter ended June 30, 2026 (2QFY2026), as revenue jumped 41.5% to RM117.25 million.

The home appliances and property group had recorded a net profit of RM13.95 million on revenue of RM82.85 million a year earlier, according to its Bursa Malaysia filing on Monday (Aug 24). Earnings per share increased to 3.05 sen from 2.63 sen.

Quarterly profit before tax rose 18.2% to RM19.81 million from RM16.76 million, while gross profit increased 38.3% to RM35.22 million from RM25.46 million.

Compared with the preceding quarter, revenue increased 12.4% from RM104.36 million, while profit before tax jumped 47.7% from RM13.41 million. Fiamma said the increase in profit before tax was primarily driven by a RM4.42 million gain on the dilution of its equity interest in a subsidiary.

First-half profit falls

For 1HFY2026, Fiamma’s net profit fell 46.3% to RM26.93 million from RM50.14 million a year earlier, despite revenue rising 22.2% to RM221.61 million from RM181.36 million.

Profit before tax declined 42.7% to RM33.22 million from RM57.94 million.

The weaker year-on-year comparison was primarily due to the investment holding and property investment segment, whose profit before tax fell to RM10.87 million from RM40.72 million.

The preceding-year period included a one-off gain of RM27.65 million from the dilution of Fiamma’s equity interests in Aricia Sdn Bhd and Dawn Land Sdn Bhd.

In a separate press release, Fiamma said that after adjusting for one-off items across both periods, normalised 1HFY2026 profit before tax increased 9.7% to RM29.3 million.

No dividend was recommended for the quarter.

Trading remains largest contributor

Trading and services remained Fiamma’s largest business, contributing RM175.18 million, or 79.1% of group revenue, in 1HFY2026.

Segment revenue rose 13.5% from RM154.34 million a year earlier, while profit before tax increased to RM22.74 million from RM21.35 million.

For 2QFY2026, trading and services revenue increased 15.5% year-on-year to RM88.2 million, according to the group’s press release. Fiamma said it continued to expand into categories including smart and energy-efficient appliances, cleaning solutions, air-conditioning and healthcare devices.

Meanwhile, the property development segment’s revenue jumped 77.8% to RM43.70 million for 1HFY2026 from RM24.58 million a year earlier, while its loss before tax narrowed to RM390,000 from RM5.47 million.

Fiamma said the higher property development revenue was driven by recognition from its mixed development project in Johor Bahru.

Outlook

Looking ahead, Fiamma said its Johor Bahru mixed development is expected to continue contributing positively to revenue, while projects undertaken by its associates in Kuala Lumpur are anticipated to support overall profitability.

The group also expects resilient demand for home appliances, supported by its market position, diversified product portfolio and expansion into higher-growth categories. It nevertheless acknowledged challenges from a mature market and intense competition.

Group CEO Jimmy Tan Chee Wee said the second quarter reflected “improving momentum” across the group’s businesses, with trading and services continuing to provide a stable operating base.

He said Fiamma would continue focusing on sustainable growth, strengthening its operating businesses and improving execution to build a more resilient long-term earnings base.

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