L&P Global to diversify from packaging into retail and construction
Malaysia-listed industrial packaging group L&P Global has proposed diversifying into wholesale and retail trade, and separately into general contracting, after a multi-year revenue decline in its core wooden packaging business. The group has signed preliminary agreements for retail distribution and accepted RM11.76 million of conditional construction subcontracts, with the moves subject to shareholder approval.
Why this mattersA packaging specialist pivoting into unrelated retail and construction signals how tariff-driven demand loss and cost inflation are pushing smaller industrial packagers to diversify away from the sector.
- L&P Global revenue fell from RM167.04m in FY2023 to RM74.69m in FY2025, with a net loss of RM1.33m in FY2025 versus a RM20.68m profit in FY2023.
- First-half 2026 revenue fell 29.31% year-on-year to RM30.01m, with profit before tax of RM2.85m boosted by a RM4.84m non-recurring asset disposal gain.
- The decline was driven by weaker wooden packaging demand from renewable energy clients facing US tariffs, plus a RM1.5m unrealised forex loss.
- L&P signed MoUs with Aspirasi Gua Sdn Bhd and Tru Mns Resources Sdn Bhd to supply hospitality products and groceries/FMCG respectively.
- The group accepted conditional construction subcontracts worth RM11.76m, comprising RM3.5m from Taghill Projects and RM8.26m from Nestcon Builders.
- Retail store set-up cost is estimated at about RM3m per location, with rollout planned to start in the second quarter of 2027.
Sources
klsescreener.com