Envictus International (BQD) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 4.7% YoY to RM197.4m; net profit increased 91.2% to RM7.1m, mainly on lower income tax expense. 9M revenue grew 3.9% to RM580.2m and net profit rose 4.0% to RM20.6m.

• 9M growth in Dairies and Trading and Frozen Food offset lower Food Services revenue; gross margin declined amid higher import, freight and logistics costs and competitive pricing.

Financial highlights

• Q3 gross profit was RM82.9m, down 2.7% YoY; 9M gross profit was RM245.7m, down 2.0%.

• Q3 operating profit was RM13.4m, down 0.6%; pretax profit was RM9.6m, down 3.4%. 9M operating profit fell 8.9% to RM40.1m and pretax profit fell 13.1% to RM28.9m.

• 9M other income rose to RM10.2m from RM3.5m, including RM2.0m FX gain and RM4.5m lease-modification gain; prior period included RM1.4m FX loss and RM1.2m lease gain.

• 9M total comprehensive income fell 16.3% to RM18.0m, including RM2.6m other comprehensive loss, mainly foreign currency translation and FVOCI fair-value losses.

Outlook and guidance

• Four Texas Chicken outlets are in the pipeline, including the first in Sabah, expected to open in Q4 FY2026; 10 San Francisco Coffee stores are expected to open by December 2026.

• Priorities include selective promotions, procurement efficiencies, supplier diversification, inventory planning, digital ordering, kiosk-led expansion and targeted SuJohan product launches.

• Near-term conditions are expected to remain challenging; planned responses include disciplined growth investment, cost optimisation, prudent capital management and stronger supply-chain resilience.