GLG Corp Ltd reported an 18.7% drop in revenue to USD 54.1 million for the half year ended December 2025, resulting in a net loss amid challenging macroeconomic conditions and tariff pressures. Despite operational efficiencies improving gross margins, the company refrained from declaring an interim dividend.
- Revenue declined 18.7% to USD 54.1 million in 1HFY2026
- Net loss after tax of USD 0.5 million versus prior profit
- Gross margin improved slightly due to production efficiencies
- Operating costs reduced, but finance costs rose due to working capital cycle
- No interim dividend declared amid uncertain trading conditions
Revenue and Profitability Under Pressure
GLG Corp Ltd, a player in the textiles and fabrics manufacturing sector, has revealed a significant revenue decline of 18.7% for the half year ended 31 December 2025, falling from USD 66.6 million to USD 54.1 million. This downturn reflects a challenging macroeconomic environment marked by escalating tariff pressures and a fiercely competitive pricing landscape. The loss of major customers and cautious sales acceptance due to credit risk concerns further weighed on top-line performance.
Consequently, GLG recorded a net loss after tax of USD 0.5 million, a stark contrast to the prior period’s modest profit. Additional tax expenses related to prior years’ assessments compounded the impact of lower revenue, underscoring the financial headwinds faced by the company.
Operational Efficiencies and Cost Management
Despite the revenue setback, GLG managed to improve its gross margin by 1.2 percentage points to 18.9%, driven by enhanced production capacity management and streamlined operational processes. This suggests a disciplined approach to cost control and efficiency gains amid adversity.
Operating expenses saw a mixed picture: selling and distribution costs fell by 12.7%, reflecting lower logistics expenses due to reduced customer orders, while administrative expenses decreased by 8.4% thanks to overhead rationalisation. However, finance costs increased by 10.1%, attributed to a lengthening working capital cycle and extended business support requirements.
Balance Sheet and Cash Flow Highlights
The company’s balance sheet showed signs of cautious management, with trade receivables and inventory levels declining by 9.5% and 14.8% respectively, indicating tighter control over working capital. Borrowings also decreased by nearly 15%, supported by scheduled repayments and reduced reliance on trust receipts.
Cash flow from operating activities remained positive at USD 6.2 million, albeit down from USD 8.0 million in the prior period, reflecting the impact of lower sales. Investment outflows were modest, and financing cash outflows reduced significantly due to loan repayments, resulting in a stable cash position of USD 11.3 million at period end.
Outlook and Strategic Focus
Looking ahead, GLG anticipates continued volatility and uncertain trading conditions driven by tariff regime changes and macroeconomic headwinds. Nevertheless, management remains focused on driving production improvements, cost discipline, and prudent liquidity management to navigate these challenges. The company did not declare an interim dividend, signalling a cautious stance on capital allocation amid ongoing uncertainty.
Overall, GLG’s half-year results paint a picture of a company grappling with external pressures but responding with operational resilience and financial prudence. The coming months will be critical in assessing whether these measures can sustain the business through a turbulent market environment.
Bottom Line?
GLG’s resilience will be tested as it balances cost discipline with the need to adapt to ongoing macroeconomic and tariff challenges.
Questions in the middle?
- How will GLG address customer retention amid competitive pricing and tariff pressures?
- What specific strategies will management deploy to mitigate the impact of volatile tariff regimes?
- Can operational efficiencies and cost controls offset further revenue declines in the second half?