Panasonic Manufacturing Malaysia Bhd Net Profit Drops 26.46 Percent To RM33.93 Million In Financial Year 2026

KUALA LUMPUR,MAY,2026 – Panasonic Manufacturing Malaysia Bhd posted its weakest annual financial performance in two decades for the financial year ended March 31, 2026, as weaker consumer demand, tougher competition and supply chain disruption weighed on the home appliance manufacturer’s earnings.

The company recorded a net profit of RM33.93 million for FY2026, down 26.46% from RM46.14 million in the previous financial year. The performance marked Panasonic Manufacturing Malaysia’s lowest annual earnings since FY2006, when it posted a net profit of RM33.09 million.

Annual revenue also declined sharply, falling 16.15% to RM689.92 million from RM822.78 million in FY2025. According to DagangNews, this was the company’s lowest annual revenue level since FY2010, reflecting weaker domestic and export sales.

In its filing to Bursa Malaysia, Panasonic Manufacturing said the weaker performance was mainly caused by subdued demand in both local and overseas markets, as well as increasingly intense competition in the home appliance sector.

The company also faced operational pressure from shipping disruptions and delivery delays to the Middle East caused by geopolitical tensions. These disruptions affected Panasonic’s ability to fulfil orders within the expected timeframe.

Panasonic Manufacturing said about RM14.5 million in delayed sales could not be recognised in the fourth quarter due to shipping congestion in the Middle East, which directly affected its 4QFY2026 performance.

For the fourth quarter ended March 31, 2026, net profit dropped 56.79% to RM3.78 million, compared with RM8.76 million in the same quarter last year. Quarterly revenue fell 10.65% to RM160.47 million from RM179.58 million previously.

The company’s quarterly Bursa Malaysia financial summary also showed full-year profit before tax declining to RM37.42 million, compared with RM51.89 million in FY2025.

Apart from weaker product sales, Panasonic Manufacturing said finance income also declined due to lower cash and bank balances following weaker operating performance. Lower interest rates on fund investments compared with the previous year also reduced finance income.

The company’s share of profit from associated companies also fell because of a more competitive market environment, adding further pressure to overall earnings.

No dividend was declared for the latest quarter. As a result, total dividend for FY2026 stood at 15 sen per share, significantly lower than the 62 sen per share paid in FY2025.

The results reflect a difficult operating environment for Panasonic Manufacturing, which manufactures and sells home appliances including fans, kitchen appliances, home showers and other consumer electrical products.

The decline also highlights wider challenges faced by Malaysia’s manufacturing and consumer appliance sectors. Slower consumer spending, lower export momentum, cost competition from cheaper imports and logistics disruption have created a difficult environment for companies that depend on both domestic and overseas demand.

For Panasonic Manufacturing, export weakness appears to be one of the key issues. The company had already warned in its previous annual presentation that weaker export sales, particularly to the Middle East, had affected earlier performance, while domestic and ASEAN demand for key products had also softened.

The latest FY2026 results show that those pressures continued into the new financial year, with supply chain congestion in the Middle East further delaying sales recognition and weakening fourth-quarter earnings.

From an investor perspective, the sharp fall in profit and dividend payout may raise questions about the company’s near-term earnings recovery. Panasonic Manufacturing remains a recognised brand in Malaysia’s consumer electrical market, but its latest results show that brand strength alone may not be enough to offset weak demand and rising competition.

The company said it expects the operating environment to remain challenging, with ongoing external pressures and competition likely to continue affecting group performance in the coming period.

Going forward, Panasonic Manufacturing will need to focus on stabilising sales, managing supply chain risk, improving product competitiveness and protecting margins in a market where consumers are becoming more price-sensitive.

Overall, Panasonic Manufacturing’s FY2026 results mark a difficult year for the group. With net profit falling to its lowest level in 20 years and revenue dropping to its weakest level since FY2010, the company faces a challenging recovery path amid weak demand, tough competition and ongoing geopolitical risks affecting export logistics.