KUALA LUMPUR (May 25): Panasonic Manufacturing Malaysia Bhd (KL:PANAMY) concluded its financial year ended March 31, 2026 (FY2026) on its weakest footing in two decades, as softer consumer demand and shipping disruptions arising from the Middle East conflict dragged both revenue and profit lower.

The home appliance manufacturer's annual net profit tumbled 26.46% to RM33.93 million in FY2026 from RM46.14 million in FY2025, its Monday filing on Bursa Malaysia showed. This marks the group's lowest annual earnings since FY2006, when it posted a net profit of RM33.09 million.

Annual revenue contracted by 16.15% to RM689.92 million — from RM822.78 million — representing its lowest top-line since FY2010's RM679.76 million.

Panasonic attributed the weaker full-year performance to subdued demand across domestic and export markets amid intensifying competition. Sales were hampered by shipping disruptions and delayed deliveries to the Middle East.

“In addition, finance income declined, primarily due to reduced cash and bank balances following softer operating performance, coupled with lower interest rates on fund placements compared to the previous year.

“The share of results from the associated company also decreased, reflecting its weaker performance in an increasingly competitive market environment," it added.

Its fourth quarter (4QFY2026) net profit plunged 56.79% to RM3.78 million from RM8.76 million in 4QFY2025, largely due to the deferred recognition of RM14.5 million in sales that were caught up in the Middle Eastern shipping bottlenecks. Revenue dropped 10.65% to RM160.47 million.

No dividend was declared with the accompanying results. Total dividends paid for FY2026 amounted to 15 sen per share, 76% lower than the 62 sen paid in FY2025.

Looking ahead, Panasonic said operating conditions are expected to remain challenging amid external headwinds and competitive pressures.

Panasonic's share price closed unchanged at RM7.25 on Monday, giving the group a market capitalisation of RM440 million. Over the past one year, the stock has fallen 47%.