Milolo Berhad Releases Maiden Interim Financial Results: Solid Growth and Strategic Expansion

Key Financial Highlights for 1st Half-Year Ended 31 March 2026

• Revenue: RM6.34 million for 1H 2026, driven by business expansion and new retail outlets.
• Profit Before Tax (PBT): RM2.14 million, PBT margin of 33.60%.
• Profit After Tax (PAT): RM1.51 million, PAT margin of 23.82%.
• Gross Profit (GP): RM4.47 million.
• Basic/Diluted Earnings Per Share (EPS): 3.34 sen (based on 250 million shares).
• Net Assets Per Share: RM0.03.
• Cash & Bank Balances: RM4.77 million as at 31 March 2026.

Balance Sheet Strength

Milolo Berhad reported total assets of RM19.39 million, with a healthy equity base of RM8.31 million. The company maintains a robust liquidity position, with cash and bank balances of RM4.77 million and minimal gearing. Non-current assets include property, plant and equipment (RM1.01 million), right-of-use assets (RM2.75 million), and investment property (RM6.0 million). The company also has significant inventories (RM2.28 million) and trade receivables (RM1.01 million).

Operational and Strategic Developments

• Retail Network Expansion: The company opened new outlets at Central i-City (Shah Alam) and Mahkota Parade (Melaka) during the reporting period, supporting revenue growth.
• Brand Recognition: Milolo’s brand visibility was significantly enhanced with its entry into the Malaysia Book of Records for “Most Participants in a Blind Box Unboxing Event.”
• Product Innovation: The event also saw the launch of the “Why So Malaysia” blind box series, marking a key milestone in the commercialization of its proprietary IPs, ‘Milolo’ and ‘Abby the Sheep’.
• Improved Margins: Margin improvement was attributed to better cost management, improved sales mix, and a stronger contribution from higher-margin products.

Cash Flow and Capital Management

• Net Cash Generated: Operating activities used cash (-RM1.99 million), primarily due to increased working capital and payables. However, financing activities raised RM4.11 million, mainly from new share issuance.
• Planned Expansion: Capital commitments of RM402,000 were approved for the renovation of a new outlet, reflecting ongoing investment in retail infrastructure.
• Proceeds Utilization: Of the RM3.5 million raised from pre-listing investors, RM506,000 has been used for listing expenses, with the remainder allocated for expansion (RM1.5 million) and working capital (RM1.0 million).

Prospects and Forward Strategy

The Board remains optimistic about the company’s growth trajectory, supported by the following factors:

• Favorable Industry Outlook: Malaysia’s economy is expected to grow by 4%–4.5% in 2026, with international tourism and private consumption underpinning retail activity.
• Industry Growth: The domestic toys and hobby market is estimated at RM7.7 billion, showing positive momentum.
• New Concepts: The company plans to launch an “Ombak Premium” concept store at KLCC and introduce dedicated DIY plush toy sections in selected outlets to enhance retail experience and further monetize its IP portfolio.

Other Notable Information

• No Dividend Declared: The Board did not declare any dividends for the period under review.
• No Material Litigation: There are no outstanding litigation matters.
• No Profit Forecast/Guarantee: The company did not publish any profit forecast or guarantee.
• No Material Unusual Items or Events: No unusual items or significant post-period events were reported.
• LEAP Market Admission: Milolo Berhad was officially listed on Bursa Malaysia’s LEAP Market on 4 May 2026.

What Investors Should Watch

• Expansion Execution: Investors should monitor the company’s ability to execute its expansion plans, particularly the rollout of new outlets and concept stores, as these are likely to drive future revenue and brand value.
• IP Commercialization: Success in commercializing its original content (e.g., “Why So Malaysia” series) is a potential value driver and differentiator in the market.
• Margin Sustainability: The company’s ability to sustain current profit margins amid setup costs for new outlets will be critical for ongoing profitability.
• Utilisation of Proceeds: Efficient deployment of pre-listing proceeds into operations and growth initiatives will be essential for shareholder value creation.

Potential Price-Sensitive Factors

• Strong financial performance and high margins in the company’s first reported results post-listing may boost investor confidence and positively affect share price.
• Continued successful expansion and IP monetization could serve as catalysts for further re-rating of the company’s valuation.
• Any delays or overruns in expansion plans, or failure to maintain growth momentum, could conversely impact sentiment.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should perform their own due diligence and consult professional advisers before making any investment decisions. The article is based on the company’s unaudited interim financial report and may be subject to adjustments upon final audit.

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