Kawan Food Bhd swung into the red in the first half of 2026 (1H26), recording a loss after tax (LAT) of RM4.6 million compared to a profit (PAT) of RM7.9 million a year earlier, as weaker sales, currency headwinds and higher promotional spending weighed on earnings.
Revenue for 1H26 fell 8.6% to RM119.5 million from RM130.7 million, reflecting the impact of a weaker US dollar against the ringgit, increased investment in promotional activities and lower recorded revenue.
For the second quarter, the group also posted a LAT of RM5.7 million, reversing a RM3.3 million PAT in 2Q25. Revenue declined to RM50.8 million from RM60.2 million.
Kawan Food attributed the weaker quarterly performance to softer demand, pricing adjustments, higher advertising and promotional expenditure, and the weaker US dollar.
Looking ahead, the group said it will continue to manage costs and supply-chain risks while preparing to launch new products in the third quarter and support its regional expansion.
Kawan Food currently exports to more than 40 countries and said it remains focused on operational efficiency, disciplined execution and maintaining its market presence amid ongoing global uncertainties.
