KUALA LUMPUR: Main Market-listed industrial packaging specialist L&P Global Bhd had proposed a diversification of its existing core business into the wholesale and retail trade sector, as well as general contracting and centralised procurement.
The corporate exercise is aimed at establishing new recurring income streams and curbing its reliance on integrated industrial packaging operations, which had been weighed down by external and cyclical headwinds, the group said.
In an announcement on Bursa Malaysia, L&P said the diversification drive follows a multi-year contraction in its financial performance.
The group saw its revenue drop from RM167.04 million in the financial year ended Dec 31, 2023 (FY2023) to RM133.57 million in FY2024, before tumbling to RM74.69 million in FY2025.
The decline turned the company into a net loss of RM1.33 million in FY2025, from a net profit of RM20.68 million in FY2023, dragged down by reduced demand for wooden packaging from renewable energy clients facing United States trade tariffs, broad economic uncertainty, and a RM1.5 million unrealised foreign exchange loss.
For the first six months ended June 30, 2026, revenue slid 29.31 per cent year-on-year to RM30.01 million.
While profit before tax rose to RM2.85 million, the gain was largely bolstered by a non-recurring RM4.84 million gain on the disposal of assets held for sale.
Stripping out the disposal gain, underlying operational earnings weakened due to lower absorption of fixed costs, along with geopolitical tensions such as the US-Iran conflict driving higher raw material, freight, and oil costs.
Under the wholesale and retail venture, L&P intended to expand into the business-to-business (B2B) distribution and business-to-consumer (B2C) retail sale of groceries, hospitality supplies, household appliances, daily essentials, and fast-moving consumer goods (FMCG).
The group had already inked two preliminary memorandums of understanding (MoUs).
L&P entered into an MoU with Aspirasi Gua Sdn Bhd (AGSB) for the supply and distribution of hospitality products and supplies—including guest amenities, toiletries, linen, housekeeping, and cleaning supplies—to hotels operated or managed by AGSB.
The group had also inked an MoU with Tru Mns Resources Sdn Bhd for the distribution and supply of groceries, FMCG, and household appliances to Tru Mns’ grocery outlets.
L&P had also identified five prospective physical retail locations in the Klang Valley, with preliminary discussions underway with developers and landlords, the group said.
The estimated set-up cost per store is pegged at approximately RM3 million, covering fit-out works, deposits, initial inventory, equipment, and staff overheads.
Operations at these locations are slated to roll out progressively beginning in the second quarter of 2027, subject to tenancy agreements and shareholder approval, said L&P.
RM11.76mil construction contracts secured
Simultaneously, L&P said it is branching into general contracting and centralised procurement, covering building construction, renovation, refurbishment, and bulk sourcing of construction materials, fixtures, and electrical components.
The company had accepted two conditional letters of award totalling RM11.76 million to kick off the business.
First is a RM3.5 million subcontract from Taghill Projects Sdn Bhd for the supply, installation, testing, and commissioning of a fire protection system for a mixed serviced-suite project in Melaka.
Another is an RM8.26 million subcontract from Nestcon Builders Sdn Bhd for the supply of materials and labour for bricklaying and plastering works for a suite apartment development in Kuala Lumpur.
Both contract awards are conditional upon securing shareholder approval for the general contracting diversification.
Management highlighted that the contracting and centralised procurement business will directly support the roll-out and fit-out of its retail store network while leveraging its existing packaging, warehousing, and logistics footprint.
New leadership and funding
To spearhead the ventures, L&P had identified two external personnel to head the respective units upon shareholder approval.
Bobby Liew Nam Jhuen will oversee the wholesale and retail trade unit, said L&P. The 35-year-old previously held key supply chain roles at CIMB Bank, British American Tobacco Malaysia, McDonald’s Malaysia, Foodpanda Malaysia, and Bila Bila Retail Sdn Bhd.
Meanwhile, Orville Ang Xian Jing will lead the general contracting and centralised procurement division. The 27-year-old is currently the chief executive officer of Alam Mawar Sdn Bhd, overseeing commercial renovations and electrical projects, including works for Bila Bila Mart.
L&P stated that capital expenditures and working capital commitments will be met via a combination of internally generated funds, bank borrowings, and potential fundraising exercises.
The board confirmed that the proposals will have no immediate impact on share capital, substantial shareholdings, net assets, or gearing for FY2026, and that neither the retail nor the contracting proposals are inter-conditional upon each other.