PETALING JAYA: Fiamma Holdings Bhd, a distributor of home appliances, sanitaryware and healthcare devices, recorded a 5.9% year-on-year increase in revenue to RM104.36 million for the first quarter ended March 31, 2026 (Q1’26), up from RM98.51 million in Q1’25.
The top-line expansion was primarily driven by accelerated output from the group’s core trading and services segment, which grew 11.6% to RM87 million, contributing 83.4% of total revenue.
Fiamma reported profit before tax (PBT) of RM13.41 million, compared with RM41.19 million in the corresponding quarter last year. The year-on-year variance is mainly due to the non-recurring items recorded in Q1’25, predominantly a RM23.22 million one-off gain arising from the equity dilution in Aricia Sdn Bhd and Dawn Land Sdn Bhd.
Excluding the one-off accounting gains, Fiamma’s Q1’26 performance reflects a clean, normalised earnings baseline. Segmental PBT for trading and services remained relatively stable at RM10.47 million, as the group actively navigated industry-wide margin pressures from currency fluctuations, logistics costs and supplier pricing dynamics.
The property development segment contributed RM16.02 million in revenue, supported by ongoing contributions from East Parc, Vida Heights and Amberwood projects. A substantial portion of the segment’s revenue was derived from the Amberwood mixed development in Johor Bahru, reflecting progressive billings as the project advances.
Crucially, the group announced a proposed joint venture with Sinaran Urusjuta Sdn Bhd (SUSB). This marks the third property entity within Fiamma transitioning from a wholly owned subsidiary to a 30%-owned associate structure, validating the group’s systematic pivot toward a highly efficient, capital-light property development strategy.
Fiamma continues to operate from a position of profound financial strength. As at March 31, the group held cash and cash equivalents of RM139.55 million against total borrowings of RM90.66 million, translating into a net cash position of RM48.9 million. Net assets per share improved to RM1.49.
Inventories increased by RM34.2 million to RM322.8 million during the quarter, mainly due to development costs incurred and capitalised for the group’s property development project, Divine KLCC. This reflects ongoing progress within the property development segment, while the group continues to maintain financial flexibility to support its operating and growth requirements.
Group CEO Jimmy Tan Chee Wee said, “Our first-quarter results demonstrate the fundamental operating strength of our core distribution engine. While the reported PBT shows a decline, this is purely a statutory comparison against a major one-off corporate gain recorded last year. Operationally, our core business is expanding. We are driving double-digit revenue growth in trading and services, expanding our market reach, and deliberately deploying our balance sheet to secure inventory ahead of anticipated consumer demand.
“Simultaneously, the proposed SUSB joint venture is a direct continuation of our capital allocation strategy. We are systematically moving towards a capital-light property model, allowing us to unlock the value of our landbanks, minimise greenfield development risks, and maintain the upside through associate contributions.”
Looking ahead, Fiamma anticipates cautious but sustained consumer demand, with purchasing behaviours shifting toward mid-range, energy-efficient, and value-for-money appliances. The group’s healthcare and medical devices segment is also gaining material traction, supported by increased public healthcare spending allocations. The board will continue to focus on disciplined margin management, rigorous cost control, and strategic portfolio expansion to drive long-term shareholder value.
