L&P Global plans retail and contracting expansion after revenue decline
The packaging group has accepted conditional construction awards worth RM11.76 million and identified five possible retail sites in the Klang Valley.
Industrial packaging group L&P Global Bhd has proposed entering wholesale and retail trading, alongside general contracting and centralised procurement. In its Bursa Malaysia announcement, the company said the expansion was intended to build recurring income and lessen its dependence on packaging.
The proposal follows a revenue slide: from RM167.04 million for FY2023 to RM133.57 million for FY2024 and RM74.69 million for FY2025. A net profit of RM20.68 million for FY2023 gave way to a RM1.33 million net loss for FY2025. L&P attributed the deterioration to weaker packaging demand among renewable energy customers facing US tariffs, economic uncertainty and an unrealised currency loss of RM1.5 million.
Revenue for the six-month period ending June 30, 2026, was RM30.01 million, down 29.31 per cent year-on-year. Pre-tax profit rose to RM2.85 million, helped mainly by a RM4.84 million one-off gain from selling assets held for sale.
For the trading venture, preliminary agreements cover hospitality supplies for hotels run or managed by Aspirasi Gua Sdn Bhd, and groceries, fast-moving consumer goods and household appliances for outlets belonging to Tru Mns Resources Sdn Bhd.
L&P said it was discussing five potential Klang Valley shop sites with developers and landlords. Establishing each outlet would cost approximately RM3 million. The company plans phased openings starting in the second quarter of 2027, dependent on shareholder approval and tenancy agreements.
The contracting plan includes two accepted conditional awards: RM3.5 million from Taghill Projects Sdn Bhd for fire-protection work in Melaka, and RM8.26 million from Nestcon Builders Sdn Bhd for bricklaying and plastering in Kuala Lumpur. Shareholders must approve the contracting diversification before either award can proceed.
L&P said the contracting operation would help fit out its shops. It plans to use internal funds and bank loans, potentially supplemented by fundraising, to finance the ventures. Neither diversification proposal depends on the other.
