Petaling Jaya, Mar 2 – ACE Market-listed SEDANIA Innovator Bhd is showing early signs of earnings stabilisation, reporting an 81% surge in EBITDA for the first half of FY2026 as operating leverage improves and its fintech division gains traction.
For the six months ended December 31, 2025 (1H FY2026), revenue rose 17% to RM44.16 million from RM37.65 million a year earlier. EBITDA climbed sharply to RM3.13 million, reflecting improved cost discipline and margin expansion.
Profit before tax nearly tripled to RM1.10 million compared with RM0.37 million in the corresponding period last year, underscoring stronger earnings conversion.
The group’s second-quarter revenue stood at RM21.72 million, broadly stable year-on-year, suggesting steady demand across its core segments despite softer external market conditions.
Managing Director and Founder Datuk Azrin Mohd Noor said the improvement was particularly visible within the Consumer Technology segment, where fintech solutions continued to scale.
Chairman Tun Md Raus Sharif added that the group is prioritising disciplined expansion, brand strengthening and distribution efficiency, alongside scaling its fintech ecosystem to support medium-term earnings sustainability.
The group entered the second half of FY2026 with enhanced liquidity following a RM6.3 million private placement exercise. Total assets stood at RM85.25 million as at December 31, 2025, providing financial flexibility for overseas recovery initiatives and recurring income expansion.
Administrative expenses were higher year-on-year due to transaction-related professional fees and corporate exercise costs.
Sustainable Brands Remain Core Contributor
The Sustainable Brands segment remained the primary revenue driver, contributing RM36.86 million year-to-date, including RM18.07 million in quarterly revenue.
While operating profit moderated due to softer overseas market contributions and increased marketing intensity, domestic performance remained stable. The group continues to focus on supply chain optimisation, channel expansion and premium brand positioning.
During the period, SEDANIA increased its stake in Offspring Inc Sdn Bhd to 80% following the acquisition of an additional 29% equity interest. The consolidation is expected to strengthen bottom-line contribution in the second half of the financial year.
Fintech Emerges as Margin Catalyst
The Sustainable Consumer Technology segment recorded quarterly revenue of RM3.37 million, driven largely by fintech solutions. Operating profit before tax improved to RM1.03 million, reflecting stronger operating leverage.
Shariah-compliant platforms such as As Sidq and the Go Halal Programme continued to see growing adoption, positioning the segment as an increasingly meaningful contributor to recurring income.
The group has embarked on additional strategic ventures in the third quarter aimed at broadening its digital footprint and strengthening recurring revenue streams.
Outlook
Looking ahead, SEDANIA is focused on reviving overseas revenue within the Sustainable Brands segment while expanding recurring income streams in Consumer Technology.
With the consolidation of Offspring and continued execution discipline, management expects stronger performance conversion in the second half of FY2026.
In market terms, the 1H FY2026 results may represent the early phase of a broader re-rating cycle. With EBITDA expanding at a significantly faster pace than revenue and recurring fintech income gaining traction, SEDANIA is beginning to demonstrate the characteristics of a scalable, margin-accretive platform rather than a brand-led cyclical operator. If execution momentum holds into the second half particularly with Offspring’s consolidation and fintech monetisation deepening.
FY2026 could mark the year the group transitions from earnings recovery to structurally higher growth. For investors, the focus will now shift to operating conversion strength, cash flow discipline and the sustainability of margin expansion as potential catalysts for valuation uplift. – TNS NEWS