Kandal M Venture projects revenue and profit growth for fiscal 2026

Kandal M Venture Limited (NASDAQ: FMFC) announced guidance projecting increases in both revenue and net income for fiscal 2026 compared to the previous year, according to a company statement.

For fiscal 2025 ended March 31, the Cambodia-based leather goods manufacturer reported revenue of approximately $17.2 million and net income of about $210,000, or $0.01 per share. In the first six months of fiscal 2026 ended September 30, 2025, the company generated revenue of approximately $7.9 million and net income of about $169,000, or $0.01 per share.

The company stated its financial position is expected to remain strong through fiscal 2027, citing zero debt and adequate cash on its balance sheet.

Director and Chairman Duncan Miao said the company is implementing a plan to mitigate the impact of U.S. tariffs, which have affected performance over the past three quarters. The strategy involves diversifying the customer base to increase sales to markets with lower tariff impact, including the U.K., Japan, and other regions in Asia, the Middle East and Europe.

CEO Fok Yui Kwong said negotiations with luxury brands in these markets are in advanced stages. Cambodia and the Philippines, where Kandal manufactures, benefit from reduced or zero tariff rates when exporting to the U.K. under the Developing Countries Trading Scheme and receive preferential rates from Japan through Economic Partnership Agreements.

Kandal expanded its manufacturing operations to the Philippines last month to increase production capacity and reduce reliance on a single location. The company noted that U.S. tariff rates on Cambodia decreased from 36% to 19% in August 2025, though this is expected to have limited effect on revenue.

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