SIBU: Sarawak-based diversified group WTK Holdings Bhd recorded a net profit of RM7.3 million in Q1 ended March 31, 2026 (FY26), against a net loss of RM21.4 million in Q1 FY25.
The improved bottom-line performance followed the cessation of loss-making timber operations and the tapes segment’s recovery from one-off fire-related losses incurred in Q1 FY25.
Group revenue in Q1 FY26 stood at RM131.3 million, compared to RM156.6 million in Q1 FY25, mainly due to the absence of contribution from the timber segment following the cessation of its operations.
Segmentally, the plantation segment, which remained the group’s largest revenue contributor, recorded RM78.1 million or 59.5% of total revenue and a profit before tax (PBT) of RM7.8 million in Q1 FY26.
Quarterly turnover and PBT were lower by 3% and 25% year-on-year (YoY), respectively, due to lower selling prices and production output of fresh fruit bunches (FFB) following the disposal of a plantation subsidiary in September 2025, as well as adverse weather conditions across certain estates.
The food segment, the group’s second-largest division, contributed RM38.6 million, or 29.4%, to group revenue, marking 14% YoY growth, supported by broader product offerings and deeper market penetration.
The PBT segment of RM1.9 million, compared to RM2.5 million in Q1 FY25, reflected set-up costs for a new branch and retail outlets as part of the broader expansion plans.
Meanwhile, the tape segment delivered a PBT of RM1.1 million in Q1 FY26 on revenue of RM11.8 million.
This figure was a reversal from a pre-tax loss of RM22.3 million in Q1 FY25, with results impacted by one-off losses from a fire-related disruption in the preceding year.
Executive director Francis Lai said the group is off to a good start in FY26 and expects to deliver strong performance in the current fiscal year, based on several favourable factors.
“The drag from timber operations is fully behind us now. Firm crude palm oil (CPO) prices are a boost to our earnings. Our newly acquired plantation assets will begin contributing positively to the group from Q2 FY26 onwards.
“In addition, we are actively scaling our food segment to capture rising demand in Sarawak. With stronger fundamentals and resources now channelled towards segments with clear growth catalysts, our earnings visibility has improved considerably going forward,” he said.
To recap, WTK completed the acquisitions of two plantation assets (Desacorp Sdn Bhd and Imbok Enterprise Sdn Bhd) and one palm oil mill (WTK Oil Mill Sdn Bhd) on April 17, 2026, for RM555 million.
Post-acquisitions, the group’s total planted area expanded by 82.4% from 17,456 hectares to 31,845 hectares, with a more favourable palm age profile.
Approximately 45.9% of the enlarged portfolio is in prime, mature, and mature-age categories, while 49% is in immature and young-mature age categories, providing a balanced age profile across near-term production and longer-term growth.
The operating environment for oil palm remains supportive, with CPO prices expected to remain firm at circa RM4,500 per metric tonne, underpinned by crude oil price trends, continued biodiesel initiatives in Indonesia and Malaysia, and broader global commodity market dynamics.
“Beyond plantation, we see meaningful growth opportunities in the food segment, driven by rising demand for frozen and convenience products, urbanisation, population growth and evolving consumption patterns.
“We are broadening our product offerings and expanding our distribution and retail presence.
“Meanwhile, the tapes segment has been repositioned into an asset-light model centred on the conversion and distribution of adhesive tape products, enabling greater operational flexibility while retaining our established customer base,” Lai said.
With the plantation segment expanding, the food segment scaling, and the tapes segment operating under a more agile model, WTK enters FY26 well-positioned to carry forward its turnaround momentum.
