Envictus International (BQD) H1 2026 earnings summary

Executive summary

• H1 revenue rose 3.5% YoY to RM382.8m, led by Dairies and Trading and Frozen Food; Food Services revenue declined 7.0%.

• Profit after tax fell 16.0% to RM13.5m as gross margin narrowed and operating expenses increased; higher other income partly offset the pressure.

• Cash and cash equivalents were RM78.6m at 31 March 2026, supported by operating cash flow and net financing inflows.

Financial highlights

• Revenue RM382.8m, up 3.5% YoY; gross profit RM162.8m, down 1.6%.

• Profit before interest and tax RM26.8m versus RM30.6m; profit before tax RM19.4m, down 17.2%.

• Net profit RM13.5m, down 16.0%; EPS 4.45 sen versus 5.30 sen.

• Other income rose to RM8.7m from RM2.1m, including RM2.5m FX gain, RM3.6m lease-modification gain and RM0.3m one-off franchisor marketing support.

• Administrative expenses rose 17.3% to RM22.6m; selling and marketing rose 1.7% to RM107.8m; warehouse and distribution rose 18.2% to RM12.6m.

Outlook and guidance

• Texas Chicken targets 15 new outlet openings in FY2026; 107 outlets operated at end-April, with the first Sabah outlet expected in the final quarter. Fuel-related disruption may delay openings.

• San Francisco Coffee is pursuing lean, kiosk-based expansion, closing selected underperforming outlets and streamlining menus to improve efficiency and margins.

• Pok Brothers is prioritising diversified sourcing, freight agreements, cost control and proactive pricing amid expected freight inflation and supply disruption.

• Dairies plans tactical pricing, promotions, expanded retail distribution and SuJOHAN product and packaging initiatives; sugar and palm oil costs have recently increased.

• Inflation in raw materials, packaging, utilities and labour is expected to pressure costs in 2026; priorities include procurement efficiency, product mix and selective pricing.