Fiamma Holdings saw its net profit for the first quarter ended March 31, 2026 plunge 70.3% to RM10.75 million from RM36.19 million a year earlier, despite a 6% rise in revenue to RM104.36 million from RM98.51 million previously [1, 2, 3, 4].

The sharp profit decline resulted mainly from the absence of a RM23.22 million one-off gain on equity dilution linked to Aricia Sdn Bhd and Dawn Land Sdn Bhd recorded in the prior-year quarter [1, 2, 3, 4]. CEO Jimmy Tan Chee Wee said the group is "deliberately deploying our balance sheet to secure inventory ahead of anticipated consumer demand," adding the trading and services segment is achieving double-digit revenue growth [1].

The trading and services segment accounted for 83.4% of total revenue, driven by higher distribution activity in home appliances, sanitaryware, and healthcare devices [1, 2, 3, 4]. CEO Chen Zhiwei (陈志伟) said the core distribution business remains resilient after excluding last year’s one-off, with stable but cautious consumer demand favoring mid-range, energy-efficient, and value-for-money products [3, 4].

The property development segment reported a year-on-year earnings decline, contributing RM16.02 million in revenue. Ongoing projects include developments in Johor Bahru and Kuala Lumpur such as the Amberwood project [1, 3, 4]. Inventories rose to RM322.8 million due mainly to capitalized development costs for ongoing property projects including Divine KLCC [1].

Fiamma maintained a net cash position of RM48.9 million at quarter-end, with cash and cash equivalents of RM139.55 million and total borrowings of RM90.66 million [1]. The company did not declare any dividend for the quarter [1].

The group plans to shift to a light-asset property development business model by forming a joint venture with Sinaran Urusjuta Sdn Bhd, converting a wholly owned subsidiary into a 30% stakeholding joint venture [2, 3, 4]. Chen noted there are ongoing pressures on margins due to exchange rate volatility, logistics costs, and supplier pricing, but the company remains cautiously optimistic on the outlook for the rest of 2026 [2].

Fiamma Holdings released these Q1 results on May 19, 2026, covering the fiscal period ended March 31 [1, 2, 3, 4].