Kamdar Group Navigates Challenging Waters: A Deep Dive into Their Latest Quarterly Report
Malaysian retail giant Kamdar Group (M) Berhad has just unveiled its unaudited consolidated financial statements for the quarter ended 31 March 2025. This report offers a crucial glimpse into the company’s performance amidst a dynamic economic landscape.
While the market landscape remains challenging, the company has shown resilience in managing its losses for the current quarter, alongside a commendable sequential improvement. Despite a decline in revenue, the Group managed to significantly narrow its net loss compared to the same quarter last year, and demonstrated a strong positive shift in cash flow generation.
Let’s break down the key figures and what they mean for the Group’s journey ahead.
Quarterly Performance Snapshot
For the quarter ended 31 March 2025, Kamdar Group faced a decline in revenue, reflecting the broader challenges in consumer spending. However, the Group’s efforts in cost management appear to be yielding results, as the net loss for the period significantly narrowed compared to the corresponding quarter in the previous year.
Current Quarter (31 Mar 2025)
- Revenue: RM14.74 million (RM14,744k)
- Gross Profit: RM6.45 million (RM6,450k)
- Loss Before Tax: RM(1.12) million (RM(1,122)k)
- Net Loss for the Period: RM(1.25) million (RM(1,247)k)
- Losses Per Share: (0.63) sen
Same Quarter Last Year (31 Mar 2024)
- Revenue: RM17.48 million (RM17,482k)
- Gross Profit: RM7.30 million (RM7,301k)
- Loss Before Tax: RM(1.21) million (RM(1,211)k)
- Net Loss for the Period: RM(1.46) million (RM(1,464)k)
- Losses Per Share: (0.74) sen
The Group’s revenue decreased by 16% to RM14.74 million from RM17.48 million. This reduction is attributed to consumers increasingly prioritising staple products over discretionary items due to rising living costs. Despite this, the loss before tax improved by 7% to RM1.12 million from RM1.21 million, primarily due to various cost savings initiatives undertaken by the Group. Similarly, the net loss for the financial period also improved by 15%.
Year-to-Date Performance (9 Months Ended 31 March 2025)
Looking at the cumulative performance for the nine months ended 31 March 2025, the trend of revenue decline persists, and the overall loss has slightly widened compared to the same period last year.
| Metric | 31 Mar 2025 (RM’000) | 31 Mar 2024 (RM’000) | Change (%) |
|---|---|---|---|
| Revenue | 36,055 | 43,969 | -18% |
| Gross Profit | 15,633 | 18,529 | -16% |
| Loss Before Tax | (6,589) | (6,505) | +1% |
| Net Loss | (6,976) | (6,906) | +1% |
| Losses Per Share (sen) | (3.52) | (3.49) | +1% |
The cumulative revenue for the nine months decreased by 18% to RM36.06 million, resulting in a 16% decrease in gross profit. Consequently, the cumulative loss before tax widened slightly by 1% to RM6.59 million, and the net loss for the period also increased by 1% to RM6.98 million.
Sequential Quarter-on-Quarter Improvement (Q3 FY2025 vs Q2 FY2025)
A notable highlight from the report is the significant improvement when comparing the current quarter (Q3 FY2025) with the immediate preceding quarter (Q2 FY2025). This sequential growth indicates a positive momentum driven by seasonal factors and internal efficiency gains.
Current Quarter (31 Mar 2025)
- Revenue: RM14.74 million (RM14,744k)
- Gross Profit: RM6.45 million (RM6,450k)
- Loss Before Tax: RM(1.12) million (RM(1,122)k)
Immediate Preceding Quarter (31 Dec 2024)
- Revenue: RM11.86 million (RM11,862k)
- Gross Profit: RM4.66 million (RM4,662k)
- Loss Before Tax: RM(2.01) million (RM(2,006)k)
The Group’s revenue increased by a healthy 23.5% from RM11.86 million in the immediate preceding quarter, reaching RM14.74 million. This surge was primarily fueled by higher demand and festive spending for textile and textile-based products in anticipation of Hari Raya Aidilfitri. This led to an improved gross profit and a significantly reduced loss before tax, highlighting the positive impact of both market demand and internal cost efficiency improvements.
Financial Health Check
Balance Sheet Overview
As of 31 March 2025, Kamdar Group’s financial position reflects a leaner structure, with reductions in both total assets and liabilities.
| Metric | 31 Mar 2025 (RM’000) | 30 Jun 2024 (RM’000) | Change (RM’000) |
|---|---|---|---|
| Total Assets | 261,781 | 271,725 | (9,944) |
| Total Liabilities | 53,929 | 56,897 | (2,968) |
| Net Assets Per Share (sen) | 105 | 109 | (4) |
Total assets decreased by RM9.9 million to RM261.8 million, mainly due to a lower inventory holding level and depreciation charges. Total liabilities also saw a reduction of RM3.0 million, driven by timing differences in accrued expenses and payables, alongside a decrease in lease liabilities.
Cash Flow Dynamics
One of the most encouraging aspects of this report is the significant turnaround in the Group’s cash flow generation, particularly from operating and investing activities.
| Activity | Current Year To Date (31 Mar 2025) (RM’000) | Preceding Year To Date (31 Mar 2024) (RM’000) | Change (RM’000) |
|---|---|---|---|
| Operating activities | 5,626 | (1,520) | +7,146 |
| Investing activities | 1,936 | (3,872) | +5,808 |
| Financing activities | (1,502) | (426) | (1,076) |
| Net increase/(decrease) in cash and cash equivalents | 6,060 | (5,818) | +11,878 |
The Group reported a net cash inflow of RM5.63 million from operating activities, a stark improvement from a net outflow in the prior year. This was primarily due to lower inventory levels and operational expenses. Investing activities also generated a positive cash flow of RM1.94 million, largely from the disposal of other investments. While financing activities resulted in a net cash outflow, driven by loan repayments and lease liabilities, the overall net increase in cash and cash equivalents by RM6.06 million is a strong indicator of improved liquidity.
Segmental Performance Insights
Kamdar Group operates primarily through two segments: Trading activities (Textile) and Investment and Management. The report provides a clear picture of each segment’s contribution.
| Business Unit | Revenue (RM’000) | Segmental (Loss)/Profit (RM’000) |
|---|---|---|
| Trading activities (Textile) | 33,640 | (8,524) |
| Investment and Management | 2,415 | 2,081 |
The core Trading (Textile) segment continues to be the primary revenue driver but recorded a segmental loss of RM8.52 million. In contrast, the Investment and Management segment, while contributing less to revenue, generated a segmental profit of RM2.08 million, providing a crucial offset to the losses from the retail operations.
Navigating Headwinds and Future Outlook
The operating environment for Kamdar Group remains challenging, with several macroeconomic factors exerting pressure on the retail textile industry.
Key Challenges:
- Global economic weakness and volatility persist.
- Steep inflation continues to impact consumer purchasing power, shifting spending habits towards essentials.
- The weakening of the Ringgit Malaysia affects import costs and overall operational expenses.
- Interest rate hikes further dampen discretionary spending, directly impacting the retail sector.
Company’s Strategic Response:
In response to these headwinds, the Group has outlined its strategic approach:
- Implementing more prudent financial management and rigorous cost control measures across all operations.
- Actively seeking and exploring new avenues to improve and diversify its revenue streams.
The Group acknowledges the difficult market conditions and is committed to adapting its strategies to
