Foodie Media Berhad Delivers Robust Q2 2026 Results, Declares Dividends and Outlines Growth Prospects

Key Highlights from the Q2 2026 Unaudited Interim Financial Report

• Revenue and Profit Growth: Foodie Media Berhad reported revenue of RM13.19 million for the second quarter ended 28 February 2026, with cumulative revenue for the period reaching RM25.75 million. Gross profit stood at RM7.46 million for the quarter, with a cumulative figure of RM14.54 million.
• Profit After Tax (PAT): PAT for the quarter was RM3.34 million, and cumulative PAT for the period was RM7.11 million. Adjusted PAT, excluding one-off IPO listing expenses, was RM4.08 million for the quarter and RM7.85 million year-to-date.
• Earnings Per Share (EPS): Basic and diluted EPS for the quarter stood at 0.36 sen, and 0.84 sen cumulatively.
• Strong Balance Sheet: Cash and short-term deposits stood at RM52.08 million as at 28 February 2026, up significantly from RM6.40 million at the close of August 2025, reflecting strong cash inflows post-IPO.
• Dividend Declaration: The Board has declared a first interim single-tier tax exempt dividend of 0.32 sen per share (approx. RM2.84 million) and a special interim single-tier tax exempt dividend of 0.21 sen per share (approx. RM1.86 million). Both dividends are payable on 25 May 2026 to shareholders on record as of 11 May 2026.
• IPO and Corporate Developments: The company completed its IPO and listing on the ACE Market of Bursa Malaysia on 28 November 2025, raising RM41.37 million. The IPO included a public issue of 138 million new shares and an offer for sale of 112 million existing shares at RM0.30 each.
• M&A Activity: On 24 March 2026, Foodie Media completed the acquisition of 80% equity interest in WTM Media Sdn. Bhd. for RM250,000 cash, expanding its subsidiary portfolio.
• Segmental Performance: The Content and Creator pillars contributed a combined 86.6% of total revenue in Q2, emphasizing the group’s strength in digital media and KOL-driven activities.
• Borrowings & Capital Structure: The group’s borrowings remain manageable at RM1.23 million (as of Feb 2026), with a strong net cash position post-IPO.
• Utilisation of IPO Proceeds: Major allocations include workforce recruitment (RM23.08 million), purchase and renovation of live streaming building (RM7 million), equipment purchases, AI software (RM0.7 million), working capital, and listing expenses. As of 28 February 2026, RM10.46 million has been utilised, with RM30.91 million remaining for future deployment.
• Effective Tax Rate: The group’s effective tax rate at 26% is higher than the statutory 24%, primarily due to non-deductible expenses.
• No Material Litigation: The group is not engaged in any material litigation as of this report date.

Shareholder and Price Sensitive Information

• Declared Dividends: The board’s decision to declare both an interim and a special dividend shortly after IPO is a significant positive signal of confidence in earnings and cash flows. This may support the share price and attract yield-seeking investors.
• Cash Position: The dramatic increase in cash reserves post-IPO enhances the company’s ability to execute its stated growth and expansion strategies, potentially accelerating earnings growth and supporting higher valuations.
• Growth Strategy: The company is prioritising expansion in digital content, KOL marketing, affiliate commerce, campaign management, and short-film production. The planned investment in a new livestream facility and AI integration signals a forward-looking approach, likely to resonate with tech-focused investors.
• M&A Activity: The acquisition of WTM Media Sdn. Bhd. post-quarter-end could be synergistic, potentially boosting future earnings and strengthening the group’s position in the media segment.
• IPO Utilisation: The detailed breakdown of IPO proceeds and their deployment timeline provides transparency and confidence to the market regarding future growth investments.
• Segmental Dominance: The heavy reliance on Content and Creator pillars, comprising over 86% of revenue, highlights the company’s expertise and focus but also signals concentration risk for investors to monitor.
• One-Off Listing Expenses: The report highlights non-recurring IPO costs that affected PAT for the quarter; adjusted figures present a clearer view of underlying profitability, which may be relevant for valuation purposes.
• Positive Outlook: Management expects prospects for FY2026 to remain positive, with continued growth across all four revenue pillars. The company’s diversified presence across multiple social media platforms is seen as a commercial strength.

Detailed Financial Analysis

Quarter-on-Quarter Comparison

• Q2 revenue of RM13.19 million was up 5% from RM12.56 million in the immediate preceding quarter.
• Gross profit margin remained stable at 56.6% versus 56.4% previously.
• Adjusted PAT grew 8.2% quarter-on-quarter to RM4.08 million, supported by higher revenue and other income from money market instruments.
• Reported PAT was down 11.5% due to one-off IPO expenses recognized during the quarter.

Balance Sheet and Cash Flow

• Total assets grew to RM66.27 million (from RM19.34 million at August 2025), mainly due to increased cash post-IPO.
• Net cash from operating activities was RM6.86 million for the period.
• Net proceeds from the IPO amounted to RM39.45 million, with total cash and cash equivalents at RM52.08 million at quarter-end.
• Borrowings remain low and manageable, with a strong net cash position.

Risk Factors and Other Notables

• No unusual items, material changes in estimates, or contingent liabilities were reported.
• No material litigation or pending legal proceedings as of the report date.
• No new corporate proposals other than those disclosed.
• The company has not carried out any property, plant, and equipment valuations in the quarter.
• No dividends were paid during the quarter, but significant dividends have been declared post-quarter-end.

Outlook and Forward Guidance

Foodie Media Berhad’s outlook remains optimistic, supported by strong cash balances, a focus on expanding core digital content activities, and strategic investments in technology and talent. Barring unforeseen circumstances, the board expects continued growth for FY2026.

Conclusion

The Q2 2026 results present a positive financial profile for Foodie Media Berhad, underpinned by strong revenue growth, high gross margins, robust cash generation, and a proactive approach to shareholder returns and business expansion. The declared dividends, recent acquisition, and clear growth initiatives are likely to be viewed positively by investors and may have a price-sensitive impact on the company’s share valuation in the near term.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or an offer to buy or sell any securities. Investors should conduct their own due diligence and consult professional advisers before making any investment decisions.

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