Thursday 13/11/2025

PETALING JAYA, Nov 13 (Bernama) -- Fiamma Holdings Bhd is positioning itself for steadier, more sustainable earnings despite a volatile global environment, driven by resilient core operations and strategic expansion across key product categories, according to its Group Chief Executive Officer, Mr Jimmy Tan Chee Wee.

Tan said the Group delivered a firm set of results for the first half of FY2025, with profit before tax (PBT) rising about 11% year-on-year, even though revenue slipped 2% from the same period last year.

“About 55% of our PBT, or around RM30 million, came from non-core contributions. Even so, our underlying trading and services division still recorded 11% PBT growth, showing that the core business remains profitable and cash-generative,” he said.

The Trading & Services segment continues to contribute over 85% of Group revenue. Tan credited this to Fiamma’s strong stable of brands, nationwide distribution coverage of more than 2,000 touchpoints, and consistent investment in product relevance.

“We compete on trust and reliability. Malaysian consumers know our brands, and we support them with strong after-sales service and dealer partnerships. Energy-efficient and smart appliances now form a larger part of our new product introductions,” he said.

Fiamma has recently broadened its home appliance portfolio to include laundry, cleaning and dishwashing solutions. While these categories are still in the early stages, Tan expects them to strengthen the Group’s total home-solutions positioning.

“These products leverage the same network and customer base we’ve built over four decades. Over time, they will enhance revenue diversity and resilience,” he said.

The Group’s entry into the air-conditioner market in July 2025 marks a significant strategic shift.

“It’s a RM3.3 billion market. We are still in the early phase, but the nationwide rollout allows us to tap into a large, fast-growing category. Our aim is measured penetration and steady market share as we build credibility,” Tan said, adding that the category is expected to be a meaningful contributor in the medium term.

Tan said the Group’s property division is seeing improved stability, supported mainly by two 30%-owned associate projects, which have achieved 50%–90% sales with 15%–20% construction progress.
 
“As sales and construction milestones progress, we expect steady contributions over the development cycle,” he said.

With Malaysia allocating over RM1 billion to healthcare upgrades in Budget 2026, Fiamma sees strong potential in its healthcare and medical device segment.

“We focus on two pillars – medical devices for hospitals and clinics, and healthcare devices for consumer and wellness channels. This segment is small today but provides recurring demand and long-term growth visibility,” Tan said.

Tan emphasised that Fiamma maintains a conservative financial profile, with low gearing and disciplined capital management.

“We grow where we have strength, and diversify where we can add value. The priority is sustainable earnings, better margins, and long-term shareholder value,” he said.

SOURCE: Aegis Communication

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--BERNAMA