"The foundation of the Group remains strong, providing a solid platform for us to capitalise on long-term growth opportunities and improve our performance. We remain focused on responding effectively to an increasingly challenging and competitive business environment."
Dear Shareholders,
On behalf of the Board of Directors (“Board”) of Beshom Holdings Berhad (“Beshom” or “Company”), I am pleased to present our Annual Report for the financial year ended 30 April 2026 (“FY2026”). FY2026 was another challenging financial year for Beshom and its subsidiaries (“Beshom Group” or “Group”) against a backdrop of economic and market volatility marked by significant geopolitical uncertainties and evolving macroeconomic developments. While the retail industry recorded modest growth in 2025 and early 2026, the growth momentum fell short of market expectations. The macroeconomic environment in Malaysia remains challenging with softer consumer spending, impacting all our operating business segments. Nonetheless, the foundation of the Group remains strong, providing a solid platform for us to capitalise on long-term growth opportunities and improve our performance. We remain focused on responding effectively to an increasingly challenging and competitive business environment. The Group closed the financial year with a moderate set of results, reflecting the balance between rising operating costs and customers’ value-driven purchasing decisions.
The current global trade environment remains highly volatile, predominantly driven by geopolitical tensions and ongoing tariff uncertainties. These factors have led to changes in trade policies, disrupted global supply chains, affecting business planning and complicating cost management, while continuing to weigh on market confidence. Both domestic and global economic growth remained highly unpredictable, and economies of most countries have yet to fully recover to their pre-pandemic levels. Many developing countries continue to deal with the impact of pandemic compounded by geopolitical tensions and evolving trade policies. Against a backdrop of challenging retail trading conditions, we took deliberate steps to manage costs and drive sales growth. During the year, we observed pockets of improving consumer sentiment, with essential goods maintaining steady demand, while discretionary spending continued to be subdued. The persistent challenging macroeconomic environment continued to impact many wholesalers and retailers across the industry, including our Group. We remain cautiously optimistic about the outlook ahead while staying focused to positioning the Group for sustainability and delivering value to our shareholders through shareholder returns.
I will begin by providing you with an overview on the Group’s strategic position and its financial performance for FY2026. A detailed discussion of each business segment is presented in the section “Management Discussion and Analysis by our Group Managing Director” which outlines a summary of each our business segments’ activities, initiatives and their respective financial performance.
Against a challenging consumer environment, the Group’s revenue closed at RM144.8 million for FY2026 compared to RM155.1 million in the financial year ended 30 April 2025 (“FY2025”), representing a decrease of approximately RM10.3 million or 6.6%. The drop in revenue was primarily attributable to the decline in sales in the Multi- Level Marketing segment (“MLM”) followed by the Retail segment. However, the Wholesale segment recorded an improvement in revenue for the year. The Group managed the direct cost effectively and maintained a gross profit margin of approximately 40%, which was largely in line with the gross profit margin recorded in FY2025. For FY2026, the cost of doing business was tightly managed but was insufficient to offset the impact of the lower revenue recorded for the year. As a result, the Group recorded profit before tax of RM10.3 million (FY2025: RM12.2 million), primarily reflecting the decrease in revenue for FY2026 amid persistent retail market pressures faced by the Group.
The Group’s strong financial position continues to anchor the Group through a series of challenges even though the financial outcomes for FY2026 fell short of expectations. The equity attributable to equity holders of the parent as at 30 April 2026 was at RM305.4 million (FY2025: RM309.5 million) translating into a net assets (“NA”) per share of RM1.02 (FY2025: RM1.03). The slight drop in equity attributable to equity holders of the parent and the NA per share was primarily due to the Group declaring almost 100% of the profits recorded for FY2026 in the form of dividends to shareholders, consistent with the payout practice in previous financial years.
The total assets of the Group was RM347.5 million (FY2025: RM355.2 million) against total liabilities of RM31.6 million (FY2025: RM34.3 million), reflecting positive net worth of the Group as at 30 April 2026. The fluctuation in total assets compared to FY2025 was mainly attributable to lower inventories held by the Group at the end of the financial year, while the lower total liabilities was mainly due to the decrease in trade and other payables. Supported by our cash-generative business model, the Group's cash and cash equivalents, and financial asset investments grew to RM94.3 million as of 30 April 2026, up from RM92.6 million in FY2025.
For the last 5 decades, we have always taken the long-term view, with the objective of ensuring that shareholder returns are delivered sustainably. As part of this commitment, our Company has maintained a dividend policy of distributing dividends with a payout ratio of not less than 50% of the Group’s profit after tax. Demonstrating our commitment to shareholder value, we have returned an average of 81% of our net earnings as dividends over the last 10 years after evaluating the capital requirements for the Group’s business operations, and maintenance of a balanced capital buffer against unforeseen risks and unexpected events in light of global uncertainties, that have become regular occurrences in recent years. This high payout highlights the consistent cash generative strength of our business model.
The Board declared a single tier interim dividend of 1.0 sen per share amounting to RM2,992,652 for the financial year ended 30 April 2026 which was paid on 17 March 2026. Following the first single tier interim dividend, the Board had on 26 June 2026, proposed a final single tier dividend of 1.5 sen per share, subject to shareholders’ approval at the forthcoming Annual General Meeting (“AGM”). Although the Group delivered modest results for FY2026, the Board is committed to deliver shareholders’ return. The total dividend declared in respect of FY2026 of 2.5 sen per share represents a payout ratio of 102%.
The macro environment remains volatile, requiring the Group to actively review its resources for optimum deployment. It is critical for Beshom to navigate the complex market conditions with speed and agility. In June 2026, the Company announced a strategic transaction to dispose of 3 industrial plots of land located along the main road of Jalan Kapar, Klang, Selangor Darul Ehsan. The lands were part of the master land held by the Group since 2008. The Board considered that it is an opportune time for the Group to dispose of the said lands which were underutilised in the past to crystalise the capital appreciation of the lands. The disposal will enable the Group to among others, recycle the capital toward businesses, both existing and potentially new opportunities to improve earnings quality around other scalable assets. Any excess capital after funding the Group’s business priorities may be distributed to shareholders but subject to further assessment by the Board upon the completion of the transaction in the next financial year 2027.
Beshom is unique. We are a long-term, multi-generational business operator with strengths that set us apart as investment proposition for investors. Our strategy remains underpinned by our core values and commitment to building long-term stakeholder relationships and disciplined capital allocation. These guiding principles have enabled us to bring affordable health products to the households across Malaysia. While FY2026 reflected a modest set of financial results, the Group remains resilient, supported by a strong asset base, well recognised branding and a solid foundation for sustainable long-term growth.
The Malaysian economy remained resilient, recording a growth of 5.2% (2024: 5.1%), despite a challenging external environment. Stable domestic economic, monetary and financial conditions helped cushion the impact of external shocks. This also paved the way for important reforms to take place and deliver the expected outcomes. As a result, the Malaysian economy stands in good stead to navigate future headwinds. This resilience was a result of deliberate design and the collective efforts of the public and private sectors, as well as the consistent work of institutions entrusted by the nation over the years (Source: Bank Negara Annual Report 2025).
Headline inflation, measured as the year-on-year growth in the Consumer Price Index (CPI), averaged 1.4% (2024:1.8%). But, high cost of living remains a major concern for many households. This partly reflects how inflation is measured in official statistics compared with people’s day-to-day experiences (Source: Bank Negara Annual Report 2025).
Growth projection for 2026 is expected to be within the range of 4%−5%, supported primarily by continued domestic demand and exports. Household spending will be driven by positive labour market conditions and policy support. The domestic economy continues to be supported by resilient fundamentals. The outlook, however, is subject to uncertainties stemming from heightened global developments. Downside risks to growth outlook include the prolonged Middle East conflict, potential economic slowdown in key trading partners, higher cost of living as well as lower-than expected commodity production. Headline inflation is projected to average within 1.5%–2.5% in 2026, and may trend closer to the upper end of the range. (Source: BNM Quarterly Bulletin 1Q2026).
In the months ahead, market conditions are expected to remain challenging amid ongoing uncertainties. Notwithstanding these headwinds, we are ready to adapt and will consider appropriately the mid-term direction of the Group following the disposal of the lands as set out above. As a Group, we will continue to strengthen our focus on our core business segments in MLM, Retail and Wholesale, and is open to exploring business opportunities that demonstrate promising long-term prospects.
The Board is committed to supporting Management in addressing underperformance, reinforcing cost discipline, and simplifying the business to drive better outcomes and accountability. The Group’s immediate priority remains to safeguard profitability by strengthening cost management initiatives, continuously enhancing digital marketing platforms to improve online shopping experience, and streamline operations across all divisions. At the same time, expanding our product portfolio, broadening distribution channels, and rolling out targeted sales promotion campaigns remain key drivers of revenue growth. In addition, the Group has initiated comprehensive review of its retail store network to optimise its footprint by rationalising underperforming outlets and relocating selected stores to more strategic locations, thereby enhancing operational efficiency and long-term sustainability.
We acknowledge that MLM segment is at an important stage of transformation, as the market environment continues to evolve with heightened competition and changes in consumer priorities. Consumers are scaling down on spending towards discretionary products, presenting both challenges and opportunities for the segment to adapt and strengthen its value proposition. The MLM segment will continuously re-assess its marketing strategies, enhance member engagement and strengthen member networking programmes to support sustainable growth, improve performance and expand its market presence.
Amid the prevailing global economic uncertainties, we expect the Group’s next financial earnings to be broadly in line with FY2026, adjusted for disposals of the lands as noted earlier. Supported by the Group’s solid financial position and healthy cash reserves, we expect that the Company will be able to continue delivering reasonable divided returns to our shareholders.
Since the Group’s inaugural Sustainability Statement published in August 2018, the Group has made meaningful progress across its key sustainability focus areas. Our Group’s sustainability agenda aligns with our corporate objectives and focuses on sustainable practices for long-term value creation. The Group continues to collaborate with stakeholders across all levels in a disciplined way to establish sustainability targets and initiatives that contribute towards a better tomorrow. The Group’s commitment to a sustainable business model is further elaborated in the Sustainability Statement 2026 which forms part of this Annual Report.
Our team is the heart of our business, and I would like to thank and recognise our team for their remarkable resilience, dedication and commitment in navigating a challenging year. On behalf of the Board, I would also like to thank our business partners and suppliers for their continued collaboration and support, and we look forward to working with you all in the next financial year and beyond. To our customers and shareholders, we thank you for your ongoing confidence and support, which remain instrumental to our journey towards sustainable growth.
Thank you.
Ng Chek Yong
Chairman