NTPM Holdings Berhad Q3FY2026 Financial Results: In-Depth Analysis for Investors

Key Highlights of the Quarter Ended 31 January 2026

• Revenue Growth: The Group achieved a revenue of RM222.6 million in Q3FY2026, representing a modest increase of 1.6% from RM219.1 million in Q3FY2025. For the nine months ended 31 January 2026, revenue stood at RM665.4 million, up slightly from RM662.1 million a year ago. The growth was driven primarily by higher sales in the tissue paper products segment.
• Profitability Turnaround: NTPM Holdings Berhad reported a profit before tax (PBT) of RM3.6 million for Q3FY2026, a significant improvement compared to a loss before tax of RM0.3 million in the corresponding quarter last year. For the cumulative nine months, however, the Group recorded a pre-tax loss of RM4.5 million (versus a profit before tax of RM6.6 million in the prior period).
• Net Profit: The Group posted a net profit of RM2.7 million for the quarter, reversing a net loss of RM1.9 million a year ago. For the nine-month period, the Group recorded a net loss of RM7.9 million, compared to a net profit of RM0.8 million previously.
• Segment Performance:
  • Tissue Paper Products: Revenue increased by 8.3% year-on-year for Q3FY2026 to RM162.7 million. This segment turned profitable with a PBT of RM1.2 million versus a loss of RM6.4 million in Q3FY2025, mainly due to lower raw material costs and higher sales of jumbo rolls and coreboard products.
  • Personal Care Products: Revenue dropped by 13% to RM59.9 million, primarily due to lower sales of baby diapers. Segment PBT dropped sharply by 60.7% to RM2.4 million, impacted by the lower sales volume.
• Cost Management: The Group benefited from lower raw material costs, which contributed to the improved profitability for the tissue paper segment. However, the decline in personal care products sales negatively impacted overall results.
• Foreign Currency Effects: The Group recorded a foreign currency translation gain of RM5.96 million for Q3FY2026 and RM14.05 million for the nine-month period, boosting total comprehensive income.
• Balance Sheet and Liquidity:
  • Total assets as of 31 January 2026 were RM990.6 million, with total equity at RM506.3 million and net assets per share at RM0.45.
  • Cash and cash equivalents stood at RM36.7 million at the end of the period, compared to RM53.9 million at the start of the financial year, reflecting significant outflows related to capital expenditure and working capital changes.
  • Total borrowings stood at RM339.8 million, with the majority being short-term facilities (bankers’ acceptances, revolving credit, term loans, etc.).
• Dividend Policy: No dividend was declared or paid for the quarter, and no dividend is proposed for the immediate future. This is critical information for income-focused investors.
• Derivatives and Hedging: The Group continues to use cross-currency swap contracts to hedge its USD borrowings, mitigating foreign currency and interest rate risks. There were no open forward contracts as of the period end, and no fair value losses were recognized on derivatives.
• Corporate Guarantees: The company has corporate guarantees of RM339.7 million outstanding, mainly as securities for credit facilities granted to subsidiaries.
• Capital Expenditure: The Group invested RM20.9 million in property, plant, and equipment during the nine-month period, with disposals amounting to RM3.6 million.
• Taxation: The effective tax for Q3FY2026 was RM0.86 million, and RM3.43 million for the nine months, reflecting both current and deferred tax movements.

Strategic and Forward-Looking Statements

• Challenging Market Environment: The Group acknowledged ongoing challenges in both domestic and overseas markets, citing geopolitical tensions, shifts in international trade, and supply chain disruptions, further aggravated by the Middle East conflict since 28 February 2026.
• Operational Response: Despite uncertainties, the Group remains focused on sustainable growth through market support strategies, competitive product offerings, and margin management. Ongoing sales campaigns in Malaysia are expected to support revenue, especially in conjunction with the Group’s 50th anniversary.
• Outlook: Management aims to maintain revenue levels in the next quarter and is committed to proactive measures to sustain profit margins.
• Risks: The Group remains exposed to foreign currency, interest rate, and credit risks, but continues to manage these via established hedging and risk management policies.

Additional Information of Interest to Investors

• No Material Litigation: There are no outstanding material legal cases as at the date of this report.
• No Significant Corporate Actions: There were no major changes in group composition, no share buy-backs, and no significant new corporate proposals or ventures announced during the quarter.
• Capital Structure: The company has not issued new shares, nor repurchased or cancelled any existing shares during the period.
• Earnings Per Share: Basic earnings per share for the quarter was 0.24 sen, compared to a loss per share of 0.17 sen in Q3FY2025. For the nine months, the Group reported a loss per share of 0.71 sen, versus a profit of 0.07 sen previously.

Potential Price Sensitive Issues for Shareholders

• Return to Profitability in Q3FY2026: The Group’s turnaround to profitability in the latest quarter, mainly due to lower input costs and sales mix improvement, could positively impact sentiment.
• Ongoing Loss for Financial Year-to-Date: The Group remains in a cumulative loss position for the nine months due to earlier quarters’ performance, which may temper investor optimism.
• No Dividend Declaration: The absence of dividend payment or proposal may disappoint income-oriented shareholders and could influence share price negatively.
• Exposure to Geopolitical and Economic Risks: Management’s commentary on a challenging and uncertain operating environment highlights ongoing risks that may affect future earnings and stock valuation.
• Debt Levels: The Group’s relatively high short-term borrowings and reliance on bank facilities expose it to refinancing and interest rate risks.

Conclusion

NTPM Holdings Berhad delivered a modest recovery in profitability for the third quarter of FY2026, driven by improved performance in the tissue paper segment and favorable input costs. However, challenges persist, especially in the personal care segment and overall market environment. The Group’s focus on sustainable growth and margin protection, alongside prudent risk management, are positives, but ongoing cumulative losses, no dividend, and macro uncertainties remain key concerns for investors.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should conduct their own research or consult a professional advisor before making investment decisions.

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