KUALA LUMPUR (Aug 21): Home appliance maker Cuckoo International (MAL) Bhd (KL:CKI) reported a marginal increase in second-quarter net profit amid a fall in revenue, as softer consumer demand led to lower units sold.

Net profit for the quarter ended June 30, 2026 (2QFY2026) rose 3.19% to RM28.22 million from RM27.35 million a year earlier, while revenue declined 19.81% to RM245.93 million from RM306.67 million, the company's filing with Bursa Malaysia showed.

Cuckoo's gross profit margin, however, improved to 36.3% during the quarter, up from 31.7% in 2QFY2025, supported by lower product costs due to a stronger ringgit and reduced average customer acquisition costs.

The bottom line was cushioned by lower distribution and administrative expenses, reduced net impairment losses on financial instruments as well as lower tax expenses, which offset the increase in finance costs.

Earnings per share for the quarter declined to 1.97 sen from 2.05 sen a year earlier.

For the first half of FY2026, net profit dropped 3.54% to RM53.25 million from RM55.2 million in the previous January-June period, while revenue fell 21.4% to RM473.76 million from RM602.95 million due to softer consumer demand.

No dividend was declared during the quarter under review.

Chief executive officer Hoe Kian Choon said Cuckoo will continue to focus on improving affordability and accessibility for consumers, maintaining prudent credit and portfolio management, and strengthening operational efficiency.

"As we move into the second half of the year, we remain focused on broadening our customer reach through targeted commercial and distribution initiatives, while continuing to build sustainable long-term value through our recurring revenue model,” he said in a statement.

Shares of Cuckoo Malaysia closed half a sen or 1.2% lower at 41 sen on Friday, valuing the company at RM587.4 million. Since its listing on the Main Market last year, its shares have declined by 55.43%.