CUCKOO International (MAL) Berhad (“CUCKOO Malaysia” or the “Company”, KLSE:5336), a Healthy Home Creator, today announced its unaudited financial results for the second quarter ended 30 June 2026 (“Q2FY2026”), recording Profit After Tax (“PAT”) of RM28.2 million, representing an increase of 12.8% quarter-on-quarter (“QoQ”) from RM25.0 million in the first quarter ended 31 March 2026 (“Q1FY2026”). Revenue increased by 7.9% QoQ to RM245.9 million, supported by higher units sold during the quarter.
Gross Profit (“GP”) increased by 11.4% QoQ to RM89.3 million, in line with the higher revenue recorded during the quarter. Distribution and administrative expenses declined by 6.8% and 14.5% QoQ respectively, mainly due to more focused marketing expenditure, process streamlining and headcount optimisation.
The Company also recorded an improvement in consumer repayment behaviour during the quarter, with net losses on impairment of financial instruments decreasing by 10.2% QoQ to RM16.6 million, following the festive-related spending patterns observed in Q1FY2026. Consequently, Profit Before Tax (“PBT”) increased by 12.4% QoQ to RM37.9 million, while PAT rose by 12.8% QoQ to RM28.2 million.
On a year-on-year (“YoY”) basis, Q2FY2026 PAT increased by 2.9% from RM27.4 million to RM28.2 million, despite revenue declining by 19.8% YoY to RM245.9 million amid softer consumer demand and lower units sold. PBT remained relatively stable at RM37.9 million, representing a marginal decrease of 1.5% YoY.
The Company’s GP margin improved to 36.3% in Q2FY2026 from 31.7% in Q2FY2025, supported by lower product costs arising from the stronger average Malaysian Ringgit and lower average customer acquisition costs. Distribution and administrative expenses also decreased by 7.2% and 37.5% YoY, respectively, mainly due to lower marketing and employee costs, coupled with the absence of RM4.7 million in one-off IPO expenses recorded in Q2FY2025.
Meanwhile, net losses on impairment of financial instruments declined by 18.9% YoY to RM16.6 million, reflecting improved repayment behaviour among consumers following the tightening of credit assessment initiatives implemented in July 2025.
For the six-month period ended 30 June 2026 (“H1FY2026”), the Company recorded revenue of RM473.8 million and PAT of RM53.2 million. Revenue declined by 21.4% YoY amid softer consumer demand and lower units sold, while PAT decreased by 3.7% YoY. Despite the softer top-line performance, GP margin strengthened to 37.3% from 31.7% in the corresponding period last year, supported by lower product costs arising from the stronger average Malaysian Ringgit and lower average customer acquisition costs.
Mr. Hoe Kian Choon (KC Hoe), CUCKOO Malaysia’s Non-Independent Executive Director and Chief Executive Officer said, “The sequential improvement recorded in Q2FY2026 reflects the progress from the measures we have taken to strengthen the quality and resilience of our business. We saw improved sales momentum during the quarter alongside better repayment behaviour, stronger profitability and continued cost optimisation, which contributed to the improvement in both our top and bottom lines compared with the preceding quarter.”
He added, “While the consumer environment remains cautious, our Q2 performance demonstrates the importance of staying disciplined in how we grow. We will continue to focus on improving affordability and accessibility for consumers, maintaining prudent credit and portfolio management, and strengthening operational efficiency. As we move into the second half of the year, we remain focused on broadening our customer reach through targeted commercial and distribution initiatives, while continuing to build sustainable long-term value through our recurring revenue model.”
The Company maintained a healthy financial position as at 30 June 2026, with total equity increasing to RM1.13 billion from RM1.11 billion as at 31 December 2025. Total loans and borrowings declined further to RM99.3 million, compared with RM139.6 million at the end of FYE2025, while the Company generated RM70.5 million in net operating cash flow during H1FY2026. Cash and cash equivalents stood at RM60.4 million as at the end of the reporting period.
During the period, the Company also paid the final dividend of 1.84 sen per ordinary share, amounting to approximately RM26.4 million, on 15 May 2026 in respect of the financial year ended 31 December 2025.
