Envictus International (BQD) H2 2025 earnings summary

Executive summary

• FY2025 revenue rose 8.4% to RM744.6m, while profit after tax fell to RM30.2m from RM50.6m, mainly reflecting prior-year one-off disposal gains and higher tax.

• Higher contributions from all three divisions and operating improvements supported profitability; year-end cash and cash equivalents were RM59.7m and shareholders’ equity RM228.0m.

Financial highlights

• Revenue increased to RM744.6m from RM686.8m; gross profit was RM336.1m versus RM306.2m, with gross margin improving to 45.1% from 44.6%.

• Profit before tax was RM47.1m versus RM55.2m; net profit was RM30.2m versus RM50.6m, and income tax expense rose to RM16.9m from RM4.6m.

• Other operating income fell to RM7.3m from RM28.5m, including the prior-year RM13.9m gain on asset disposal and RM6.5m foreign-exchange gain.

• Selling and marketing expenses rose 9.7% to RM216.3m, while finance costs increased 4.7% to RM14.4m, mainly from outlet lease interest and higher bankers’ acceptance use.

Outlook and guidance

• FY2026 plans include 17 additional Texas Chicken outlets, including the first three in Sabah; anticipated poultry price stability and supplier savings could support operating margins.

• Texas Chicken will pursue menu refreshes, promotions, strategic pricing, digital marketing and wider self-ordering kiosk deployment to support sales and efficiency.

• SF Coffee plans asset-light outlet growth and continued digital and operating improvements; Pok Brothers is expanding e-commerce, product range and agency partnerships.

• Dairies plans broader products, distribution and digitalisation; milk powder costs remain high despite easing sugar prices.