Can-One Berhad Q2 2025 Financial Review: Navigating Forex Headwinds
Published: August 22, 2025
Can-One Berhad, a prominent player in the packaging industry, has released its financial results for the second quarter ended June 30, 2025. The report reveals a challenging period for the group, as a slight dip in revenue was overshadowed by a significant swing from profit to loss. The primary culprit? Unfavourable foreign exchange movements, which have heavily impacted the bottom line. Let’s dive deeper into the numbers to understand the full picture.
Core Financial Highlights: A Tale of Two Currencies
At a glance, the top-line performance seems relatively stable, but the profitability metrics tell a different story. The group’s performance was significantly impacted by external macroeconomic factors, particularly the depreciation of the US Dollar against the Malaysian Ringgit.
For the second quarter of 2025, the Group recorded a loss before tax of RM13.3 million, a stark contrast to the RM12.4 million profit in the same quarter last year.
Q2 2025 (Current Quarter)
Revenue: RM 736.2 million
Profit Before Tax: (RM 13.3 million)
(Loss)/Profit After Tax: (RM 22.7 million)
Basic (Loss)/Earnings Per Share: (9.82 sen)
Q2 2024 (Comparative Quarter)
Revenue: RM 762.4 million
Profit Before Tax: RM 12.4 million
(Loss)/Profit After Tax: RM 0.1 million
Basic (Loss)/Earnings Per Share: 1.63 sen
The Group’s revenue saw a modest decrease of 3.4% year-on-year. However, the key takeaway is the significant reversal in profitability. This was mainly attributed to an unrealised foreign exchange loss of RM18.2 million, which arose primarily from its core General Packaging division.
Breaking Down the Business Segments
To understand the group’s performance better, let’s examine how each of its business divisions fared during the quarter.
| Division | Revenue (Q2 2025) | Profit/(Loss) Before Tax (Q2 2025) | Key Highlights |
|---|---|---|---|
| General Packaging | RM 689.7 million | (RM 10.8 million) | Revenue dipped due to lower sales in Aluminium Cans and Cartons. Swung to a significant loss mainly due to unfavourable forex movement on USD-denominated receivables. |
| Contract Manufacturing | RM 42.8 million | (RM 2.1 million) | Lower revenue from decreased sales volume, but losses narrowed thanks to a better sales mix and improved profit margins. |
| Trading | RM 35.7 million | RM 1.2 million | Showed positive growth with a slight revenue increase and a significant jump in profit before tax, driven by lower interest expenses. |
| Property Development & Investment Holding | RM 16.2 million | RM 4.0 million | Contribution from property development activities in Kapar, based on work progress. Performance was lower compared to the same period last year. |
The Road Ahead: Challenges and Opportunities
The management has acknowledged a tough operating environment ahead. Several factors are expected to influence the Group’s performance for the remainder of the year.
Potential Risks on the Horizon:
- Foreign Exchange Volatility: As seen this quarter, currency fluctuations remain a significant risk to profitability.
- Inflationary Pressures: Rising costs for raw materials, labour, transport, and energy could squeeze margins.
- Macroeconomic Conditions: Escalating geopolitical conflicts, potential sea trade disruptions, and cautious consumer spending could impact demand.
Despite these challenges, the Board remains cautiously optimistic. The Group plans to navigate this landscape by focusing on enhancing operational efficiency and actively exploring new market opportunities to drive sustainable growth. A key long-term project to watch is the new aluminium can plant in the USA, which commenced operations in December 2023. As a greenfield project, it is expected to start contributing positively to the Group’s results in 3 to 5 years.
Summary and Outlook
In summary, Can-One Berhad’s second quarter of 2025 was a story of operational resilience tested by severe macroeconomic headwinds. While the core business faced a profitability hit from forex losses, the underlying revenue streams did not see a drastic fall. The improved performance in the Trading division and narrowed losses in Contract Manufacturing show positive spots within the portfolio. The company’s strategic focus on operational efficiency and long-term investments like the US plant indicates a forward-looking approach.
Investors will be keenly watching how the company mitigates currency risks and manages cost pressures in the coming quarters. The path to profitability for the new US plant will also be a key long-term catalyst to monitor.
Key points for consideration going forward:
- Currency Risk Management: The Group’s ability to hedge or manage its exposure to USD/MYR fluctuations will be critical for stabilizing earnings.
- Operational Efficiency: Success in controlling costs amidst global inflation will directly impact margins and profitability.
- Long-Term Growth Projects: The progress and eventual contribution of the US aluminium can plant are central to the Group’s future growth narrative.
My Professional Take
From my perspective, this report highlights a classic case of a fundamentally large operation being impacted by macroeconomic factors beyond its immediate control. The key for investors is to look beyond the headline loss to assess the underlying operational health and long-term strategy. The resilience in certain divisions is encouraging, but the effectiveness of their forex risk management will be the story to follow in the short to medium term.
What are your thoughts on Can-One’s ability to navigate these forex challenges? Do you see the new US plant as a game-changer in the long run?
Share your insights in the comments section below!
