Envictus 1Q FY2026 profit drops 28% to RM8.4m on lower F&B margins and higher costs; net asset value edges up to RM0.77
Summary:
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Group revenue grew 2.7% year on year to RM198.2m for the three months ended 31 December 2025, but gross profit slipped 4.8% to RM84.8m as overall gross margin contracted to 42.8% from 46.2%.
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Net profit attributable to shareholders fell 28.2% to RM8.4m (EPS 2.77 sen vs 3.86 sen) as profit before tax declined 24.1% to RM11.5m on higher administrative, selling and marketing and R&D expenses, and increased expected credit losses.
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Segmentally, Dairies revenue surged 34.3% on expanded capacity and new channels (local volume +11%, export growth including Cambodia), and Trading & Frozen Food rose 13.3% on tourism and seasonal demand, but Food Services (Texas Chicken and San Francisco Coffee) revenue dropped 8.8% amid cautious consumer spending and outlet rationalisation.
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Operating cash flow strengthened to RM14.3m (1Q FY2025: RM3.4m) on better working‑capital management, while net debt rose modestly as net bank borrowings increased to RM109.8m and lease liabilities to RM115.4m; cash and bank balances stood at RM73.0m.
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Net asset value per share improved to RM0.77 from RM0.75 as at 30 September 2025, with management citing continued focus on cost control, outlet productivity and targeted expansion across core divisions to support long‑term growth despite near‑term margin pressure.