Envictus International (BQD) H1 2025 earnings summary

Executive summary

• H1 revenue rose 17.7% YoY to RM369.8m; profit before tax increased 27.2% to RM23.4m, while net profit eased 1.5% to RM16.1m as tax expense rose.

• Excluding the prior-period net one-off gain of RM9.0m from an asset disposal, offset by a subsidiary disposal loss, normalized operating profit after tax rose from RM7.4m to RM16.1m.

Financial highlights

• Gross profit increased 21.5% to RM165.4m; gross margin improved to 44.7% from 43.3%.

• Operating expenses increased 7.9% to RM138.0m, including selling and marketing costs up 16.7% to RM105.9m; other operating expenses fell 74.1% to RM1.6m.

• Tax expense rose to RM7.3m from RM2.0m, largely reflecting prior-period utilization of Texas Chicken's unabsorbed business losses and capital allowances.

Outlook and guidance

• Cautiously optimistic on F&B growth; priorities include business expansion and operational efficiency. Texas Chicken planned three additional outlets by FY2025 year-end.

• Texas Chicken expected to launch its app in H2 FY2025 for loyalty and customer engagement; plans include new products, value bundles, automation and labor-process improvements.

• Dairies is assessing expansion into complementary product lines, with plans intended to be firmed up within 12 months.