Gabra Malaysia

Orgabio Delivers Remarkable 192.6% PAT Growth to RM3.2 MILLION in Q3 FY2026

Orgabio

Orgabio Holdings Berhad (“Orgabio” or the “Company”) a leading instant beverage premix manufacturer in Malaysia, continued to demonstrate stronger earnings momentum for the third quarter ended 31 March 2026 (“Q3 FY2026”), supported by higher demand for its instant beverage premix manufacturing services from third-party brand owners and improved operating efficiency at its new factory.

For Q3 FY2026, the Group recorded revenue of RM34.8 million, representing a 24.26% year-on-year (“YoY”) increase from RM28.0 million in the corresponding quarter last year. The growth was primarily driven by stronger demand from third-party brand owners across both domestic and overseas markets, with the manufacturing segment remaining the Group’s principal revenue contributor.

Gross profit rose significantly by 84.11% YoY to RM8.0 million, compared to RM4.3 million in Q3 FY2025. Gross profit margin also improved to 22.91% from 15.46% previously, supported by better economies of scale from higher production volumes, stable raw material prices and improved operational efficiency at the new factory.

Net profit after tax (“PAT”) increased by 192.60% YoY to RM3.2 million, compared to RM1.1 million in Q3 FY2025. The stronger profitability was mainly attributable to higher gross profit and favourable foreign exchange movements, partially offset by higher administrative expenses and impairment losses on financial assets recognised during the quarter.

For the nine-month period ended 31 March 2026 (“9M FY2026”), Orgabio recorded revenue of RM114.6 million, representing a 49.10% increase from RM76.8 million in the corresponding period last year. Gross profit increased 61.27% YoY to RM21.4 million, while PAT for 9M FY2026 climbed 154.84% YoY to RM8.7 million, compared to RM3.4 million in 9M FY2025, reflecting stronger sales volume, improved factory utilisation and better margin absorption.

The Group continued to see contribution from both domestic and overseas markets. For 9M FY2026, domestic revenue increased to RM64.9 million from RM39.8 million, while overseas revenue rose to RM49.7 million from RM37.1 million. This reflects broader demand traction from third-party brand owners across key markets.

Quarter-on-quarter (“QoQ”), revenue decreased 14.57% from RM40.7 million in Q2 FY2026, mainly due to lower domestic sales from the coffee premix segment, while overseas markets remained relatively stable. Despite the lower revenue, gross profit increased 17.91% QoQ to RM8.0 million, while PAT rose 192.60% QoQ to RM3.2 million, underpinned by stronger margin performance and stable raw material prices.

As at 31 March 2026, Orgabio’s total assets stood at RM101.0 million, while shareholders’ equity strengthened to RM68.5 million from RM59.7 million as at 30 June 2025. Net assets per share improved to RM0.28 from RM0.24 previously. The Group’s total borrowings reduced to RM7.3 million from RM10.4 million, while cash and cash equivalents increased to RM12.3 million. Net cash generated from operating activities stood at RM9.1 million for 9M FY2026, reflecting improved operating cash flow generation.

Mr. Ean Yong Hien Voon, Chief Executive Officer and Executive Director of Orgabio Holdings Berhad commented:

“Q3 FY2026 reflects the continued strengthening of Orgabio’s operating platform. While revenue moderated sequentially due to lower domestic orders during the quarter, our gross profit and profit before tax improved quarter-on-quarter, demonstrating the benefit of better production efficiency, stable input costs and improved utilisation at our new factory.

On a year-to-date basis, demand from both domestic and overseas markets remains encouraging, and we will continue to focus on expanding our customer base, enhancing operational efficiency and developing value-added premix solutions for brand owners.”

Looking ahead, Orgabio remains positive on the outlook of the global instant coffee and beverage premix market, supported by rising demand for convenient, functional and premium beverage solutions. The Asia-Pacific region continues to offer attractive growth opportunities, driven by urbanisation, evolving consumer lifestyles and increasing adoption of instant and specialty coffee products.

In Malaysia, the coffee premix industry remains resilient, supported by stable domestic consumption, export opportunities and the country’s position as a competitive halal-certified manufacturing hub. Consumer preferences are also shifting towards healthier and value-added products, including low-sugar, plant-based and dairy-free alternatives, creating further opportunities for product innovation.

With enhanced manufacturing capabilities, improving production efficiency and growing demand from third-party brand owners, Orgabio remains well-positioned to capitalise on favourable industry trends. The Board remains optimistic about the Group’s prospects for FY2026, supported by continued focus on operational resilience, customer expansion, product innovation and sustainable earnings growth.

Leave a Reply

Your email address will not be published. Required fields are marked *