Jawala’s FY2026 Loss Deepens: Why There Is Still No Dividend

Jawala Inc. (SGX: 1J7) declared no dividend for the financial year ended 31 July 2026, repeating its FY2025 decision. The board cited the group’s loss. For shareholders waiting for a payout, the cash-flow statement gives another reason to watch: the business used cash in its operations and continued to spend on its plantations. The unaudited results were announced on 29 September 2026. [S1, p. 24] [S1, p. 26] [S1, p. 1]

A larger loss despite a better second half

Full-year revenue fell to RM6.28 million from RM10.18 million in FY2025. Jawala attributed the decline mainly to lower logging activity in the first half. Sales improved in the second half, reaching RM4.03 million against RM2.67 million a year earlier, but that recovery did not reverse the full-year decline. [S1, p. 3] [S1, p. 20]

The group’s net loss widened to RM9.54 million from RM3.48 million. The loss attributable to Jawala shareholders was RM6.93 million, compared with RM2.61 million in FY2025. These are different measures: the larger group figure also includes the share of losses borne by non-controlling interests. [S1, p. 3]

One major contributor was a RM4.06 million fair-value loss on biological assets, compared with a RM1.86 million gain the year before. Biological assets are the group’s planted trees. Their carrying value is estimated from expected future cash flows, so this accounting loss does not itself represent cash spent during FY2026. Jawala said higher harvesting and haulage costs were the main reason for the write-down. The group also recorded a RM468,000 impairment loss on financial assets. [S1, p. 3] [S1, p. 6] [S1, p. 8] [S1, p. 21]

Cash still went out

The non-cash valuation loss is only part of the dividend picture. Net cash used in operating activities increased to RM3.11 million from RM1.38 million in FY2025. The group spent another RM3.60 million on additions to biological assets. Its cash-flow statement records RM6.14 million of borrowing proceeds, which helped fund these outflows. [S1, p. 6]

At 31 July 2026, cash and bank balances were RM1.42 million, down from RM2.44 million a year earlier. Of the latest balance, RM1.00 million was pledged for a banker’s guarantee, leaving RM423,000 of cash and cash equivalents in the cash-flow statement. Current liabilities exceeded current assets by RM2.30 million. That shortfall makes collections, production and access to funding relevant to any eventual return of dividends. [S1, p. 4] [S1, p. 12] [S1, p. 13] [S1, p. 15]

Borrowings excluding leases rose to RM27.59 million from RM20.78 million. The plantation facility carries a fixed 3% interest rate, but it remains a repayment obligation. Jawala says it expects higher orders and production to help meet obligations, and identifies the facility and possible funding from its ultimate holding company as sources of support. Those are management’s plans, rather than cash already generated by the business. [S1, p. 10] [S1, p. 17] [S1, p. 22]

What would change the dividend picture?

Jawala has no FY2026 dividend entitlement, and it also paid none for FY2025. The second-half sales improvement is encouraging, but it has yet to translate into positive full-year operating cash flow. The next results will show whether harvesting and customer collections can fund day-to-day needs and plantation spending with less reliance on borrowing. Until then, the board’s decision to withhold a dividend is consistent with the reported loss and cash demands. [S1, p. 3] [S1, p. 6] [S1, p. 23] [S1, p. 24]