Envictus International (BQD) Q1 2026 earnings summary

Executive summary

• Q1 FY2026 revenue rose 2.7% YoY to RM198.2m, while profit after tax fell 28.2% to RM8.4m as gross margin contracted and operating expenses increased.

• Dairies and Trading & Frozen Food growth more than offset lower Food Services revenue; cash generated from operations improved to RM14.3m from RM3.4m.

Financial highlights

• Revenue RM198.2m, up 2.7% YoY; gross profit RM84.8m, down 4.8%; profit before tax RM11.5m, down 24.1%.

• Profit after tax RM8.4m, down 28.2% YoY; EPS 2.77 sen vs 3.86 sen.

• Other income rose to RM6.2m from RM2.1m, mainly from RM2.1m foreign exchange gains and RM2.5m net gain on lease modifications.

• Administrative expenses increased 13.7% to RM11.9m and selling and marketing expenses rose 3.8% to RM56.5m; warehouse and distribution expenses fell 6.7% to RM6.4m.

Outlook and guidance

• FY2026 plans include at least 15 new Texas Chicken outlets, with three drive-throughs planned for Q1 and entry into Sabah; early January outlet count was 104.

• Dairies expects favourable near-term input costs from easing sugar prices, a stronger Ringgit, stable milk powder prices and moderating crude palm oil; competition and aggressive pricing persist.

• Trading & Frozen Food expects seasonal sales lifts around Chinese New Year and Hari Raya, with a seasonal dip during Ramadan; focus areas include omni-channel reach and product range expansion.

• Priorities include disciplined costs, selective expansion, digitalisation, brand development and supply-chain resilience; no dividend was declared to conserve cash for expansion.