KUALA LUMPUR (Nov 11): Industrial packaging firm L&P Global Bhd (KL:L&PBHD) is considering diversifying into fast-moving consumer goods (FMCG) and construction and procurement of building materials to expand its earnings base.

These proposals come after its main business swung into a loss in its latest financial year ended Dec 31, 2025 (FY2025) because of cyclical and external headwinds resulting in a decline in revenue, the company said in a bourse filing on Wednesday.

These plans will be presented to shareholders for approval at an extraordinary general meeting that will be convened at a later date. To support its case for diversification, the group intends to present for shareholders' consideration memoranda of understanding with two firms related to the FMCG business and conditional acceptance of two deals worth RM11.76 million related to the construction sector.   

“The proposed diversifications are intended to broaden the group’s revenue base and reduce its reliance on the packaging business, which has been affected by fluctuations in demand from customers in the renewable energy sector,” it said.

L&P Global said the wholesale and retail business of FMCG, which include groceries and daily essentials, generally benefit from recurring consumer demand and may be less susceptible to cyclical fluctuations.

Meanwhile, the general contracting and centralised procurement business will enable the company to explore opportunities arising from construction-related activities.

“Collectively, these businesses are expected to provide the group with additional avenues for revenue generation and support the development of a more diversified business portfolio over the longer term,” it noted.

L&P Global posted a net loss of RM1.33 million on revenue of RM74.69 million in FY2025.

The loss came amid weaker demand for boxes and crates from renewable energy industry customers, largely due to the impact of the US tariffs, it noted.

It posted net profits of RM11.1 million in FY2024 and RM20.68 million in FY2023.

The two MOUs related to FMCG that L&P Global inked are with Aspirasi Gua Sdn Bhd and Tru Mns Resources Sdn Bhd. Both MOUs last one year.

Aspirasi Gua is the operator of the co-living platform iBilik, and the MOU with L&P Global is to explore the supply and distribution of hospitality products and supplies. Tru Mns Resources operates the Go Fresh grocery outlets. That MOU is to explore the supply and distribution of groceries, other FMCGs and household appliances.

The two construction-related conditional letters of award are from units of Taghill Holdings Bhd (KL:TAGHILL) and Nestcon Bhd (KL:NESTCON).

Taghill Projects Sdn Bhd awarded a RM3.5 million conditional subcontract for a fire protection system for a mixed development project in Melaka and Nestcon Builders Sdn Bhd issued a RM8.26 million conditional subcontract for architectural masonry works for a proposed apartment development in Kuala Lumpur.

Formal letters of award will be issued upon obtaining shareholders’ and/or regulator approvals.

Shares of L&P Global ended half a sen or 2.33% higher at 22 sen, valuing the company at RM123.38 million.