PETALING JAYA: Building materials wholesaler and distributor Unitrade Industries Bhd returned to profitability in the financial year ended March 31, 2026 (FY26), driven by stronger margins and tighter cost controls, while expressing cautious optimism for FY27 amid sustained infrastructure spending and private sector investments.
The group posted a profit after tax and non-controlling interests (PATNCI) of RM20.1 million for FY26, reversing a loss of RM15.1 million recorded a year earlier.
Gross profit jumped 49.1% year-on-year to RM133.3 million, despite revenue remaining broadly flat at RM1.77 billion versus RM1.76 billion previously, as gross profit margin improved to 7.6% from 5.1%.
The turnaround was attributed to improved pricing discipline, a better product mix, tighter inventory management and stricter credit controls that reduced receivables impairment.
Operating cash flow rose to RM69.9 million, while cash and cash equivalents increased to RM106.3 million as at March 31, 2026.
Group managing director Nomis Sim Siang Leng said FY26 marked a significant milestone for the company following strategic initiatives implemented over the past two years.
“While the operating environment remains uncertain, we believe we are better positioned to navigate these challenges than in previous years,” he said.
The wholesale and distribution business remained Unitrade’s largest revenue contributor, accounting for RM926.4 million, or 52.5% of total revenue, representing an 8.6% increase from the previous year.
The group’s metal recycling business generated RM735.1 million in revenue and processed more than 450,000 tonnes of ferrous and non-ferrous metals during the year, while revenue from its renewable energy segment rose 26.7% to RM56.5 million.
Unitrade presented renewable energy as a standalone business segment for the first time in FY26, reflecting its growing strategic importance.
Nomis said the group will continue strengthening its core wholesale distribution business while expanding its green business portfolio, including renewable energy and metal recycling, to diversify earnings and enhance profitability.
He added that through subsidiaries Intergreen Metals Sdn Bhd and Kien San Metal Sdn Bhd, the group supplies recycled metals to electric arc furnace steelmakers, supporting lower-emission steel production.
Meanwhile, the group also released its maiden standalone Sustainability Report, becoming an early adopter of the International Sustainability Standards Board’s IFRS Sustainability Disclosure Standards under Malaysia’s National Sustainability Reporting Framework.
Executive director Simson Sim Xian Zhi said adopting the standards ahead of regulatory requirements reflects the group’s commitment to transparency and long-term value creation.
“The publication of our first standalone Sustainability Report marks an important step in how we account for our progress. As an early adopter of the IFRS Sustainability Disclosure Standards, we have chosen to move ahead of the regulatory timeline because we regard transparency and accountability as foundations of long-term value creation,” he said.
Unitrade also unveiled its Carbon Management Plan, with Phase 1 implementation beginning in FY27. The phase will focus on strengthening emissions data and governance, improving Scope 3 emissions visibility, and advancing decarbonisation initiatives through energy efficiency, renewable energy adoption and electrification, supporting its target of achieving net-zero emissions by 2050.
The group’s sustainability efforts have also received external recognition, achieving a score of 3.5 out of 5.0 in the FTSE4Good assessment as of Dec 22, 2025, including a full score of 5.0 for governance.
Looking ahead, Unitrade expects demand to be supported by infrastructure projects and private investments in data centres, semiconductor facilities, industrial developments and logistics hubs.
The group said it will continue to manage inventory, credit exposure, costs and working capital prudently while strengthening both its core operations and green business portfolio.
