Mynews Holdings Berhad Delivers Solid Q1 2026 Results Amid Continued Expansion

Key Highlights from the Latest Financial Report

• Revenue Growth: Mynews Holdings Berhad (“Mynews” or “the Group”) reported a robust revenue of RM238.44 million for the first quarter ended 31 January 2026, marking a notable year-on-year increase of 10.5%.
• Network Expansion: The Group expanded its retail footprint significantly, growing from 632 outlets to 699 outlets as of end-January 2026. The expansion was a primary driver of the higher revenue.
• Profitability: Gross profit rose by 10.8% to RM89.13 million, with the gross profit margin slightly improving to 37.4%. However, profit before tax slipped 3.0% to RM6.55 million, mainly due to higher operating costs from the expansion and regulatory changes.
• EBITDA Improvement: Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased to RM32.70 million, up from RM30.79 million in the corresponding quarter last year.
• Cost Structure: Administrative expenses surged by 22.0% to RM10.93 million due to increased personnel costs, network expansion, and marketing. Selling and distribution expenses rose by 12.4% to RM47.62 million, while other expenses climbed 7.9% to RM22.64 million on higher depreciation charges.
• Net Profit: Profit after tax attributable to owners of the company was RM4.07 million, up 5.1% from RM3.87 million in Q1 2025. Basic earnings per share improved to 0.54 sen from 0.52 sen.
• Cash Position: Net cash generated from operating activities was RM41.24 million, a sharp increase versus RM9.05 million a year ago, mainly due to better working capital management. Cash and cash equivalents at quarter-end stood at RM27.50 million.
• Borrowings: Total secured borrowings decreased to RM89.67 million from RM96.73 million at end-October 2025, indicating ongoing deleveraging.
• No Dividend This Quarter: No dividend was declared or paid during the quarter.

Segmental Performance

• Retail Segment: Contributed RM237.74 million in external revenue, remaining the Group’s core business. Manufacturing, supporting ready-to-eat food and bakery products, generated RM700,000 in external revenue.
• Joint Ventures: The Group’s collaboration with Japanese partners through Kineya Kitchen and Ryoyu Bakery, collectively known as the Japanese Food Hub (“JFH”), continued to support the retail chains with innovative offerings.

Operational and Financial Details Investors Should Note

• Capital Expenditure: RM11.61 million was invested in property, plant, and equipment during the quarter, primarily for new and refurbished outlets, signalling ongoing aggressive expansion.
• Contractual Commitments: Capital commitments for property, plant, and equipment stood at RM2.90 million as at 31 January 2026.
• Contingent Liabilities: The Group provided corporate guarantees totaling RM99.14 million to financial institutions and landlords.
• Related Party Transactions: Mynews engaged in several routine related-party transactions, including management fees, trade sales, rental, royalties, and staff secondment expenses, all disclosed in detail in the report.

Key Factors That Could Impact Share Price

• Growth Strategy: Mynews is committed to an aggressive retail expansion strategy in FY 2026, aiming to further strengthen its market position and realise economies of scale. This could translate into higher future earnings if well executed.
• Innovation in Food Offerings: Focus on food research and development to introduce locally relevant, ready-to-eat products is expected to drive customer traffic and repeat purchases, supporting topline growth and margin improvement.
• Cost Management: Despite expansion, the Group is actively pursuing cost optimisation and automation to enhance productivity and efficiency, which could protect future margins in a competitive environment.
• Macro Factors: The report notes higher expenses from expanded service tax and minimum wage, as well as one-off repair costs. Any further regulatory changes in these areas could impact future profitability.
• Dividend Policy: The absence of an interim dividend this quarter may disappoint income-focused investors, though it signals a reinvestment focus for growth.

Balance Sheet and Liquidity Position

• Healthy Asset Base: Total assets increased to RM668.32 million from RM661.04 million at end-October 2025, with significant investments in new outlets and manufacturing capabilities.
• Net Asset Value: Net assets per share remained steady at RM0.34.
• Gearing: The Group continues to manage its debt levels prudently, with all borrowings denominated in Ringgit Malaysia and a reduction in short-term and long-term borrowings over the quarter.

Outlook

Mynews Holdings Berhad remains optimistic about its prospects for FY 2026, with the Board highlighting a balanced approach that combines aggressive network expansion with rigorous cost management. The Group expects to capitalise on emerging opportunities in the convenience retail sector, leveraging its brand portfolio (myNEWS, CU, WHSmith, SUPERVALUE, MARU Coffee) and its Japanese Food Hub for differentiated product offerings. Barring unforeseen circumstances, management believes this strategy will support sustainable value creation for shareholders.

Other Notable Disclosures

• No material litigation or corporate proposals as at the date of the report.
• No unusual items or changes in accounting estimates affecting the results.
• No changes in the composition of the Group during the quarter.
• No profit forecast or guarantee issued previously.

Conclusion

The Q1 2026 results reinforce Mynews’ position as a key player in Malaysia’s convenience retail sector, supported by continued expansion, innovation in food offerings, and prudent financial management. Investors should monitor the Group’s progress on cost controls, outlet growth, and R&D-driven product differentiation, which are likely to be key share price drivers in the coming quarters.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to consult their licensed financial advisers before making investment decisions. The article is based on unaudited interim results as of 31 January 2026 and may be subject to future adjustments or developments.

View MYNEWS HOLDINGS BERHAD Historical chart here