Envictus International Holdings Limited reported a net profit of RM20.61 million for the nine months ended Jun 30 2026, edging 4.0 per cent higher year-on-year (YoY) as robust demand for its dairy products offset margin pressure in food services.
The group’s revenue rose 3.9 per cent YoY to RM580.19 million, while basic earnings per share improved to 6.78 sen from 6.51 sen a year earlier. No interim dividend was declared, in line with the same period last year, as the board said it intends to conserve cash for working-capital needs.
Segmentally, the Dairies Division was the standout contributor, with turnover climbing 33.0 per cent to RM136.32 million and pre-tax profit rising to RM5.42 million (9M FY25: RM2.01 million). The improvement reflected stronger domestic demand for SuJohan-branded condensed and evaporated milk and growing export sales following the commissioning of a new one-kilogramme packing line in April.
Trading and Frozen Food revenue increased 12.7 per cent to RM118.77 million, delivering pre-tax earnings of RM4.53 million (down from RM8.50 million a year ago) amid higher logistics costs. The Food Services Division, encompassing Texas Chicken and San Francisco Coffee, posted revenue of RM325.11 million, 7.2 per cent lower YoY, with pre-tax profit easing to RM28.63 million from RM35.04 million as competitive price promotions weighed on margins. Group-wide gross profit margin narrowed to 42.3 per cent from 44.9 per cent, reflecting higher import, freight and logistics costs that could not be fully passed on to consumers.
On the cost side, finance expenses edged up 3.9 per cent to RM11.22 million, tracking greater utilisation of trade facilities. Administrative costs rose 12.4 per cent to RM31.91 million, partly due to expenses linked to new banking facilities and higher personnel costs. Warehouse and distribution expenses increased 18.3 per cent to RM19.40 million on stronger volumes in dairies and frozen food.
During the period, Envictus strengthened its logistics infrastructure with the RM71.9 million acquisition of a new warehouse for its Trading and Frozen Food arm, funded by a RM61.6 million term loan and additional trade financing lines. Capital expenditure also covered RM13.8 million for new Texas Chicken and San Francisco Coffee outlets and RM9.4 million for the dairies’ new packing line. Net cash generated from operations totalled RM34.38 million, while higher investing cash outflows of RM96.15 million were largely offset by RM72.47 million in financing inflows, leaving cash and equivalents at RM70.46 million.
Looking ahead, management expects operating conditions to remain challenging amid elevated input costs, supply-chain disruptions and cautious consumer spending. Key priorities include expanding Texas Chicken’s footprint—four outlets, including its first in Sabah, are scheduled to open by fiscal year-end—rolling out 10 additional San Francisco Coffee stores by December 2026, and defending market share in dairies through selective promotions and product launches. The group also intends to reinforce procurement efficiency, diversify suppliers and leverage its enhanced warehouse capacity to mitigate cost pressures and support growth.