MBV International Ltd (MBV) reported profit attributable to owners of RM 9.67 million for the six months ended 30 June 2026, an 18.5% increase versus RM 8.16 million a year earlier. The uplift stemmed mainly from a RM 6.10 million gain after the waiver of a consideration payable linked to a 2023 acquisition.

Revenue declined 4.6% year-on-year to RM 83.30 million, reflecting softer demand in both core product lines: • Imprintable apparel fell 5.3% to RM 65.53 million as volumes slipped 3.3% to 5.8 million pieces and average selling price eased 1.7% to RM 11.40 per piece. • Gift products edged down 1.1% to RM 17.79 million; a 10.2% volume contraction to 4.4 million pieces was largely offset by an 8.1% price increase to RM 4.00 per piece.

Gross profit retreated 9.8% to RM 25.46 million and gross margin narrowed to 30.6% from 32.3%. Administrative and other operating expenses rose 28.5% to RM 15.80 million, driven by higher staff, depreciation and professional fees, while selling and distribution costs decreased 5.8% to RM 4.92 million.

Other income surged to RM 6.99 million (1H25: RM 2.02 million) on the waiver-related gain. Finance costs remained low at RM 0.07 million. Income tax expenses fell 48.4% to RM 1.61 million, reflecting lower taxable profit in certain subsidiaries. Net profit margin improved to 11.8% from 10.1%.

Earnings per share increased to 1.54 sen, up from 1.30 sen in the prior-year period. No interim dividend was declared.

Segment review • Wholesaling contributed RM 75.67 million revenue and RM 22.64 million gross profit. • Manufacturing added RM 7.64 million revenue and RM 2.82 million gross profit.

Balance sheet and liquidity Net current assets rose to RM 178.10 million (31 Dec 2025: RM 152.27 million). Cash and cash equivalents stood at RM 92.90 million, down from RM 130.42 million after a RM 29.12 million increase in fixed deposits. Interest-bearing borrowings declined to RM 3.86 million; gearing ratio improved to 2.4% from 2.8%.

Strategic moves On 24 March 2026 MBV disposed of its 40% stake in Lordan Group for HK$31.41 million, eliminating associate losses and reallocating resources to core operations. The transaction offset the outstanding consideration from the 2023 acquisition, and the related waiver generated the RM 6.10 million one-off gain.

Use of IPO proceeds Unutilised net proceeds of HK$31.70 million have been re-allocated to sales-office upgrades, e-commerce platform development and working capital, targeted for deployment by end-2028.

Outlook Management cited an uncertain economic backdrop for 2H 2026 but intends to preserve prudent cash management while pursuing revenue-enhancing opportunities in imprintable apparel and gift markets across Malaysia and Singapore.

No significant post-period events were reported.