KUALA LUMPUR (Aug 20): Can maker Can-One Bhd (KL:CANONE) posted its second straight quarterly net profit, helped by higher revenue and gross profit, as well as a sharp reduction in foreign exchange losses. Forex losses narrowed sharply to RM3.2 million from RM27.2 million a year earlier, with the loss arising primarily from the general packaging division.

Net profit rose to RM28.67 million in the three months ended June 30, 2026 (2QFY2026) from a net loss of RM18.87 million a year earlier. Earnings per share were 14.92 sen compared with a loss per share of 9.82 sen.

Revenue for the quarter increased 10.5% to RM813.4 million from RM736.18 million, driven by improved performance across its general packaging, contract manufacturing and trading divisions. The company also recognised a net gain of RM19.5 million from the disposal of right-of-use assets.

Quarterly profit more than doubled from RM13.8 million in the first quarter.

No dividend was declared for the quarter under review.

For the first half, Can-One posted a net profit of RM42.5 million, reversing a net loss of RM9.2 million a year earlier. Revenue rose 6.1% to RM1.6 billion from RM1.51 billion.

In a bourse filing on Thursday, Can-One said it remains cautiously optimistic about its performance for FY2026, while acknowledging challenges from intense competition in the industry.

Can-One plans to allocate additional resources to business development to boost sales volumes and orders from existing and new customers. It will also continue efforts to improve inventory management and control, including rationalising paper-roll purchases.

Other measures include increasing focus on sales and collections to improve cash flow, as well as raising production efficiency through lower wastage and greater automation to reduce overhead costs.

Its 55%-owned subsidiary Box-Pak (Malaysia) Bhd (KL:BOXPAK) also returned to profit in the second quarter. It posted a net profit of RM988,000 compared with a net loss of RM7.55 million a year earlier.

The turnaround was driven mainly by the cessation of losses at its Hanoi plant, which reduced selling, marketing and administrative expenses, as well as a strategic shift in product mix at its Senai plant.

Box-Pak's quarterly revenue was little changed at RM146.85 million.

For the first half, Box-Pak posted a net profit of RM610,000, reversing a net loss of RM13.58 million. Revenue fell 4.7% to RM279.06 million from RM292.78 million.

Can-One shares fell 2.6% to RM1.50 on Thursday, valuing the company at RM288.2 million. The stock has declined 14.8% this year.

Box-Pak shares were untraded, last closing at 20.5 sen on Wednesday, giving the company a market value of RM24.6 million. The stock is down 10.9% year to date.