KUALA LUMPUR: Cuckoo International (MAL) Bhd posted lower net profit in the first quarter ended Mar 31, 2026 (Q1 FY26) due to softer consumer demand.

Earnings for the quarter under review slipped 10.1 per cent year-on-year to RM25.03 million from RM27.86 million a year ago.

Revenue dropped 23.1 per cent to RM227.83 million in Q1 FY26 from RM296.28 milliom in the same period last year as the company saw lower units sold in the quarter.

In a filing with Bursa Malaysia, the company noted that distribution and administration costs dropped 7.3 per cent to RM18 million and 14.5 per cenr to RM15.7 million, respectively.

The reduction in these expenses are mainly due to lower marketing expenses because of focused marketing spending.

Net losses on impairment of financial instrument rose 47.7 per cent to RM18.5 million, reflecting slower repayment behavior among spending shifted towards prioritising expenses in preparation for the Chinese New Year and Hari Raya celebrations in the first quarter.

Looking ahead, the the company remains cautiously optimistic on its long-term prospects.

"With consumers increasingly favouring rental arrangements as an alternative to outright purchases, the group is well-positioned to capitalise on this trend.

"Through continued investment in technology and wellness-focused home living solutions, including home appliances and household goods, home care services and other lifestyle solutions, the group is committed to sustain growth and build a resilient foundation for future growth," it added.

Cuckoo's share price closed unchanged on Monday at 43 sen, valuing the company at RM616.1 million.