MYMBN Q2 2025 Report: Navigating Headwinds Amidst Rising Costs
MYMBN Berhad, a key player in the bird’s nest industry, has just released its financial results for the second quarter ended June 30, 2025. The report reveals a challenging period for the company, marked by a significant drop in year-over-year revenue and a swing to a net loss. This deep dive will unpack the key figures, explore the underlying reasons for the performance, and look at the company’s strategy moving forward.
The headline story from MYMBN’s latest report is a tale of two pressures: declining year-over-year sales and soaring raw material costs, which have squeezed profitability and pushed the company into the red for the quarter.
Core Financial Performance: A Year-Over-Year Snapshot
Comparing this quarter to the same period last year paints a stark picture. The company faced a notable contraction across its top and bottom lines, reversing the profits seen in Q2 2024.
Q2 2025 (Current Quarter)
Revenue: RM12.00 million
Loss Before Tax (LBT): -RM1.51 million
Net Loss Attributable to Owners: -RM1.42 million
Loss Per Share (LPS): -0.37 sen
Q2 2024 (Comparative Quarter)
Revenue: RM19.94 million
Profit Before Tax (PBT): RM0.42 million
Net Profit Attributable to Owners: RM0.26 million
Earnings Per Share (EPS): 0.07 sen
The 39.8% year-on-year drop in revenue was a primary driver of the weaker performance. This decline was seen across all key geographical markets, with sales to the People’s Republic of China (PRC), the company’s largest market, falling by over 39%.
Revenue Breakdown by Geography (Q2 2025 vs Q2 2024)
| Region | Q2 2025 Revenue (RM’000) | Q2 2024 Revenue (RM’000) | Change |
|---|---|---|---|
| People’s Republic of China (PRC) | 7,604 | 12,512 | -39.2% |
| Malaysia | 3,614 | 6,156 | -41.3% |
| Vietnam | 784 | 1,269 | -38.2% |
Quarter-on-Quarter: A Story of Rising Costs
While the year-over-year comparison is challenging, a look at the quarter-on-quarter (Q2 vs Q1 2025) performance reveals another critical issue: margin compression. Although revenue actually increased by an impressive 43.15% from the previous quarter (Q1 2025: RM8.38 million) due to higher demand, the company swung from a gross profit of RM1.13 million in Q1 to a gross loss of RM0.09 million in Q2. The report attributes this directly to a spike in the purchase cost of raw materials, which was not matched by a proportionate increase in average selling prices. This indicates a highly competitive environment where the company was unable to pass on higher costs to customers.
Risk and Prospect Analysis
MYMBN is operating in a dynamic but challenging environment. The company’s future performance will depend on how it navigates several key opportunities and risks.
Prospects and Strategic Initiatives
Management remains optimistic about improving performance in the second half of the year. Their strategy is centered on several key pillars:
- Market Expansion: The company is focused on regional growth for its Raw Unclean Edible Bird’s Nest (RUCEBN) products and will intensify marketing efforts to enlarge its customer base. Participating in international trade shows is a key part of this plan to secure new clients.
- Cost Management: Acknowledging the margin pressure, management will focus on better managing the input cost of raw materials and exploring opportunities to contain other indirect costs.
- Vigilant Monitoring: The company will keep a close watch on international industry developments and economic conditions, particularly foreign exchange movements, to mitigate adverse impacts. The strengthening Ringgit Malaysia contributed to a foreign exchange loss this quarter, highlighting the importance of this vigilance.
Key Risks on the Horizon
Despite the strategic initiatives, the company faces significant headwinds. The bird’s nest industry is subject to seasonality, weather conditions, and fluctuating demand, especially during festive periods. The primary risks highlighted by this report include:
- Raw Material Cost Volatility: The inability to pass on the sharp increase in raw material costs directly impacted profitability this quarter. Continued volatility remains a major risk to margins.
- Market Dependence: The PRC remains the group’s major revenue contributor. While the market is vibrant, it is also experiencing fluctuations, making the company’s performance sensitive to economic conditions in that single market.
- Foreign Exchange Exposure: As an exporter, MYMBN is exposed to currency fluctuations. A strengthening Ringgit, as seen this quarter, can negatively impact earnings when converting foreign sales back to the local currency.
Dividends
The Board of Directors did not propose or declare any dividend for the current financial quarter.
Summary and Outlook
MYMBN’s Q2 2025 results reflect a period of significant challenge, defined by lower year-over-year sales and severe margin pressure from rising input costs. The swing from profit to loss underscores the tough trading conditions. However, the strong quarter-on-quarter revenue growth suggests that underlying demand for its products remains resilient. The company’s future success hinges on its ability to execute its strategies for cost control and market diversification effectively. The management’s proactive approach to marketing and cost optimisation will be critical in navigating the current headwinds and steering the company back towards profitability.
Key challenges to monitor moving forward include:
- Margin Recovery: The ability to manage or pass on the high cost of raw materials is the most immediate challenge.
- Performance in PRC: Given its importance, any further slowdown or volatility in the PRC market could significantly impact revenue.
- Currency Fluctuations: The impact of foreign exchange rates on profitability will continue to be a factor.
