Kawan Food hit by revenue slump, posts Q2 loss

Kawan Food Bhd reported a net loss of RM5.66 million in the second quarter of 2026, down from a profit of RM3.30 million in the same period a year earlier. The company's revenue declined to RM50.80 million, compared to RM60.22 million a year ago. The dip in profitability was primarily attributed to reduced sales demand, price adjustments, and the weakening US dollar against the ringgit during the quarter.

For the first half of 2026, Kawan Food recorded a net loss of RM4.48 million, compared to RM7.99 million in the same period last year, with revenue falling to RM119.47 million from RM130.71 million. The company cited US dollar/ringgit headwinds, increased promotional investments, and lower registered revenue as factors behind the revenue contraction.

Kawan Food's chairman emeritus and acting group managing director, Gan Thiam Chai, attributed the first half of the year to softer demand in several markets and foreign exchange movements. In response, the company continued to invest selectively, expand sales channels, and enhance its product pipeline while managing operating costs and improving execution.

The ultimate goal, according to Gan, is to improve the business's quality and resilience by strengthening existing markets, developing new channels and products, and ensuring that investments yield meaningful commercial outcomes. The company will closely monitor these initiatives and adjust its approach based on market response.