Kandal M Venture Limited Announces Financial Results for Full Fiscal Year Ended March 31, 2026
Rhea-AI Summary
Kandal M Venture Limited (Nasdaq: FMFC) reported full fiscal year 2026 (ended March 31) revenue of US$17.1 million, down 0.3% from US$17.2 million in 2025, with cost of sales up 0.4% to US$13.9 million.
Gross profit declined to US$3.24 million and gross margin slipped from 19.5% to 18.9%, mainly due to additional production supervisors, quality control staff and higher indirect material and overhead costs. Selling and distribution expenses fell 19.5% to US$245,153, while general and administrative expenses were broadly flat at about US$2.68 million but with a sharp reduction in related-party management fees and IPO-related professional fees.
Net income increased 12.4% to US$235,625, aided by lower interest expense. Operating cash flow turned negative, with US$(1.88) million used in operating activities and US$(2.63) million used in investing, including a US$2.5 million associate investment. Financing activities generated US$8.0 million, mainly from IPO share proceeds, which were used to repay related-party balances and bank borrowings, lifting total equity to US$8.05 million and eliminating borrowings by March 31, 2026. According to Kandal, a new growth capital facility obtained in June 2026 will support technology upgrades and capacity expansion in Cambodia and the Philippines.
Positive
- Net income up 12.4% to US$235,625 in fiscal 2026
- Interest expense reduced to US$134,894 from US$582,013
- Selling and distribution expenses down 19.5% to US$245,153
- Total equity increased from US$378,104 to US$8,049,264
- Borrowings reduced to zero from US$5,088,600 year-end 2025
- New US$2.5 million associate investment added to non-current assets
Negative
- Revenue declined 0.3% to US$17,128,067
- Gross margin contracted from 19.5% to 18.9%
- Net cash used in operating activities of US$1,884,807
- Net cash used in investing activities of US$2,632,884
- Inventories increased from US$1,646,333 to US$2,549,920
- Trade and other receivables increased to US$2,032,477 from US$1,497,817
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 23 | Six-month earnings | Negative | -24.1% | Revenue and net income fell year over year while gross margin compressed. |
| Jul 30 | Full-year earnings | Negative | +0.4% | Revenue and gross profits increased, although net income declined and IPO costs pressured results. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings reactions were -24.12% and 0.41%, while the current release combined higher net income with lower revenue and margin.
Key Terms
gross profit margin financial
right-of-use assets financial
expected credit loss financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Kandal Takes Actions to Build a Tech-Enabled, Multi-Country Manufacturing Platform
TAKHMAO, Cambodia, July 30, 2026 (GLOBE NEWSWIRE) -- Kandal M Venture Limited (Nasdaq: FMFC) (“Kandal” or the “Company”), a contract manufacturer of affordable luxury leather goods with manufacturing operations in Southeast Asia, today announced its financial results for its Full Fiscal Year Ended March 31, 2026.
Recent developments:
On June 16, 2026, the Company announced it has secured access to a growth capital facility to fund its international infrastructure expansion. Specifically, the proceeds are earmarked for equipment procurement and technological upgrades for Kandal’s manufacturing plants in Cambodia and the Philippines. This is aligned with the Company’s strategy to build a tech-enabled, multi-country manufacturing platform.
Management Commentary
“The first half of our fiscal year was impacted by the rapidly evolving geopolitical and macroeconomic environments which raised uncertainty through the apparel ecosystem. As the year progressed, our management was able to build flexibility into our operations and run our business model with more resiliency, ” said Mr. Duncan Miao, Director and Chairman of the Board of Kandal. “While our revenues levels were essentially flat year-over-year, we showed meaningful operational and financial discipline to maintain a stable business model. The proceeds from our June 2025 IPO provide significant ability to invest in our long-term future.
“As we look ahead, we anticipate strong order demand from our existing customers and several new customers based in Europe and Asia. As a result, we will continue to expand our production capacity and invest in new manufacturing technology,” said Mr. Duncan Miao, Director and Chairman of the Board of Kandal. “Our ongoing actions to enhance our production capabilities will make us more responsive to our customers, improve our production cycles, expand our margins, and create a more environmentally friendly operation.”
Revenue
For the years ended March 31, 2025, and 2026, we generated our revenue through sales of leather goods.
Our revenue decreased slightly by US
Cost of sales
Our cost of sales consists mainly of raw material costs, direct labor costs and factory overheads.
Our cost of sales increased by US
Gross profit and gross profit margin
Our gross profit decreased by US
Selling and distribution expenses
Our selling and distribution expenses consisted of export expenses, trucking costs and customs clearance fees. The amounts decreased by
Administrative expenses
Our administrative expenses consisted of salaries, welfare and other benefits, director’s remuneration, management fees, professional services fees, office expenses and utilities, depreciation and others.
The following sets forth a discussion and analysis of our administrative expenses for the years ended March 31, 2025, and 2026:
Salaries, welfare and other benefits
Our salaries, welfare and other benefits increased by
Management fees
Our management fee represented service fees for general corporate management paid to a related company during the year, decreased by US
Office expenses and utilities
Our office expenses and utilities consist mainly of office rental expense, electricity and water charges, travelling and stationery expenses.
The amounts remained relatively stable for the years ended March 31, 2025, and 2026, respectively.
Professional services fees
Our professional services fees consist mainly of fees paid to external lawyers and consultants.
Professional services fees decreased by US
Depreciation
Our depreciation remained relatively stable for the year ended March 31, 2025, and 2026.
Others
Other expenses remained relatively stable for the year ended March 31, 2025, and 2026.
Cash generated from/(used in) operating activities
Our cash inflow from operating activities was principally from receipt of sales. Our cash outflow used in operating activities was principally for payment of purchases of raw materials, staff costs and other operating expenses.
For the year ended March 31, 2026, we had net cash used in operating activities of US
Cash used in investing activities
For the year ended March 31, 2026, net cash used in investing activities was US
Net cash used in financing activities
For the year ended March 31, 2026, net cash generated from financing activities of US
Net income
As a result of the foregoing, our net income increased by US
About Kandal M Venture Limited
Kandal M Venture Limited is a contract manufacturer of affordable luxury leather goods with its manufacturing operations in Southeast Asia. It primarily manufactures handbags, such as shoulder bags, crossbody bags, tote bags, backpacks, top-handle handbags, satchels, and other smaller leather goods, such as wallets.
For more information, please visit the Company’s website at www.kandalmv.com.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. The Company cautions investors that actual results may differ materially from the anticipated results, and encourages investors to read the risk factors contained in the Company’s final prospectus and other reports it files with the SEC before making any investment decisions regarding the Company’s securities. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law.
Contacts:
Company:
Kandal M Venture Limited Investor Relations Contact:
Padachi Village, Prek Ho Commune, Takhmao Town, Kandal Province,
Kingdom of Cambodia
Email: enquiry@fmfco.com.kh
Telephone: +855 23425205
Investor Relations Contact:
Skyline Corporate Communications Group, LLC
Scott Powell, President
1177 Avenue of the Americas, 5th Floor
New York, New York 10036
Office: +1 (646) 893-5835 x2
Email: ir@skylineccg.com
Website: www.skylineccg.com
| FINANCIAL STATEMENTS | ||||||||||||
| KANDAL M VENTURE LIMITED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME | ||||||||||||
| March 31, 2024 | March 31, 2025 | March 31, 2026 | ||||||||||
| US$ | US$ | US$ | ||||||||||
| Revenue | 13,971,743 | 17,186,677 | 17,128,067 | |||||||||
| Cost of sales | (10,604,640 | ) | (13,829,471 | ) | (13,885,050 | ) | ||||||
| Gross profit | 3,367,103 | 3,357,206 | 3,243,017 | |||||||||
| Operating expenses: | ||||||||||||
| Selling and distribution expenses | (239,013 | ) | (304,406 | ) | (245,153 | ) | ||||||
| General and administrative expenses | (1,646,043 | ) | (2,677,883 | ) | (2,675,644 | ) | ||||||
| Income from operations | 1,482,047 | 374,917 | 322,220 | |||||||||
| Other income/(expenses): | ||||||||||||
| Interest expense | (403,723 | ) | (582,013 | ) | (134,894 | ) | ||||||
| Other income, net | 219,309 | 436,050 | 243,079 | |||||||||
| Profit before income tax | 1,297,633 | 228,954 | 430,405 | |||||||||
| Income tax expense | (178,101 | ) | (19,281 | ) | (194,780 | ) | ||||||
| Profit for the year | 1,119,532 | 209,673 | 235,625 | |||||||||
| Other comprehensive income: | ||||||||||||
| Items that may be classified subsequently to profit or loss | ||||||||||||
| Exchange differences on translating foreign operations | (313 | ) | — | — | ||||||||
| Total comprehensive income attributable to equity owners of the Company | 1,119,219 | 209,673 | 235,625 | |||||||||
| Earnings per share attributable to owners of the Company | ||||||||||||
| Basic and diluted earnings per share | 0.07 | 0.01 | 0.01 | |||||||||
| Weighted average number of ordinary shares used in computing basic and diluted earnings* | 16,000,000 | 16,000,000 | 17,735,342 | |||||||||
| KANDAL M VENTURE LIMITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | |||||||||
| March 31, 2025 | March 31, 2026 | ||||||||
| US$ | US$ | ||||||||
| ASSETS | |||||||||
| Non-current assets | |||||||||
| Property, plant and equipment | 512,601 | 349,440 | |||||||
| Right-of-use assets | 138,483 | 69,241 | |||||||
| Other investment | — | 2,500,000 | |||||||
| Deferred tax assets | 29,787 | 48,306 | |||||||
| Total non-current assets | 680,871 | 2,966,987 | |||||||
| Current assets | |||||||||
| Inventories | 1,646,333 | 2,549,920 | |||||||
| Trade and other receivables | 1,497,817 | 2,032,477 | |||||||
| Deferred initial public offering (“IPO”) costs | 795,771 | — | |||||||
| Amounts due from related parties | 1,053,708 | 72,033 | |||||||
| Loans to related parties | 4,291,215 | — | |||||||
| Cash and cash equivalents | 102,697 | 3,583,757 | |||||||
| Total current assets | 9,387,541 | 8,238,187 | |||||||
| Total assets | 10,068,412 | 11,205,174 | |||||||
| EQUITY AND LIABILITIES | |||||||||
| Equity attributable to owners of the Company | |||||||||
| Share capital* | 160 | 183 | |||||||
| Share premium | — | 7,435,512 | |||||||
| Merger reserve | 13 | 13 | |||||||
| Capital reserve | (2,500,000 | ) | (2,500,000 | ) | |||||
| Foreign currency translation reserve | 5,130 | 5,130 | |||||||
| Retained earnings | 2,872,801 | 3,108,426 | |||||||
| Total equity | 378,104 | 8,049,264 | |||||||
| Non-current liabilities | |||||||||
| Lease liabilities | 87,632 | — | |||||||
| Total non-current liabilities | 87,632 | — | |||||||
| Current liabilities | |||||||||
| Trade and other payables | 4,424,830 | 3,041,100 | |||||||
| Lease liabilities | 80,916 | 87,632 | |||||||
| Borrowings | 5,088,600 | — | |||||||
| Income tax payable | 8,330 | 27,178 | |||||||
| Total current liabilities | 9,602,676 | 3,155,910 | |||||||
| Total liabilities | 9,690,308 | 3,155,910 | |||||||
| Total equity and liabilities | 10,068,412 | 11,205,174 | |||||||
| KANDAL M VENTURE LIMITED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
| March 31, 2024 | March 31, 2025 | March 31, 2026 | ||||||||||
| US$ | US$ | US$ | ||||||||||
| Cash flows from operating activities | ||||||||||||
| Profit before income tax | 1,297,633 | 228,954 | 430,405 | |||||||||
| Adjustments for: | ||||||||||||
| Depreciation of property, plant and equipment | 198,360 | 193,626 | 199,328 | |||||||||
| Depreciation of right-of-use assets | 69,241 | 69,241 | 69,242 | |||||||||
| Interest expense | 421,713 | 595,421 | 143,340 | |||||||||
| Interest income from loan to related party | (165,368 | ) | (370,705 | ) | (23,736 | ) | ||||||
| Interest income from loan to third party | — | — | (180,528 | ) | ||||||||
| Interest income | — | — | (30,403 | ) | ||||||||
| Inventories write-down | 65,770 | 37,557 | 37,229 | |||||||||
| Reversal of inventories write-down | — | (28,678 | ) | (77,240 | ) | |||||||
| Allowance for provision for expected credit losses – other receivables | 11,532 | 71,188 | 15,894 | |||||||||
| Reversal of allowance for provision for expected credit losses – other receivables | — | — | (106,293 | ) | ||||||||
| Other receivables written off | — | 35,120 | — | |||||||||
| Allowance for provision for expected credit losses – third parties | — | — | 27,694 | |||||||||
| Operating cash flows before working capital changes | 1,898,881 | 831,724 | 504,932 | |||||||||
| Changes in working capital: | ||||||||||||
| Inventories | 1,519,269 | 147,511 | (863,576 | ) | ||||||||
| Trade and other receivables | (112,572 | ) | (659,095 | ) | (471,955 | ) | ||||||
| Trade and other payables | (43,699 | ) | 1,958,462 | (859,757 | ) | |||||||
| Cash generated from operations | 3,261,879 | 2,278,602 | (1,690,356 | ) | ||||||||
| Income tax paid | (123,111 | ) | (144,037 | ) | (194,451 | ) | ||||||
| Net cash generated from/(used in) operating activities | 3,138,768 | 2,134,565 | (1,884,807 | ) | ||||||||
| Cash flows from investing activities | ||||||||||||
| Purchase of property, plant and equipment | (22,972 | ) | (16,710 | ) | (36,167 | ) | ||||||
| Acquisition of equity investment | — | — | (2,500,000 | ) | ||||||||
| Interest received | — | — | 210,931 | |||||||||
| Deferred initial public offering (“IPO”)costs | (230,642 | ) | (565,129 | ) | (307,648 | ) | ||||||
| Net cash used in investing activities | (253,614 | ) | (581,839 | ) | (2,632,884 | ) | ||||||
| Cash flows from financing activities | ||||||||||||
| Proceeds from issuance of IPO shares, net | — | — | 8,014,981 | |||||||||
| (Loans to)/Repayment from related parties | (3,783,461 | ) | 80,664 | 4,314,951 | ||||||||
| (Advances to)/Repayments from related parties, net | (5,110,245 | ) | 999,610 | 981,675 | ||||||||
| Proceeds from/(Repayments of) borrowings, net | 6,373,131 | (2,095,514 | ) | (5,088,600 | ) | |||||||
| Interest paid on borrowings | (399,226 | ) | (578,660 | ) | (132,780 | ) | ||||||
| Payment of lease liabilities | (68,989 | ) | (74,716 | ) | (80,916 | ) | ||||||
| Interest paid on lease liabilities | (22,487 | ) | (16,761 | ) | (10,560 | ) | ||||||
| Net cash (used in )/generated from financing activities | (3,011,277 | ) | (1,685,377 | ) | 7,998,751 | |||||||
| Net change in cash and cash equivalents | (126,123 | ) | (132,651 | ) | 3,481,060 | |||||||
| Cash and cash equivalents at beginning of year | 361,471 | 235,348 | 102,697 | |||||||||
| Cash and cash equivalents at end of year | 235,348 | 102,697 | 3,583,757 | |||||||||
