Envictus International Holdings posted a net profit of RM8.4 million for the three months ended Dec 31 2025, down 28.2 per cent year-on-year, as higher operating costs offset modest top-line growth driven by its Dairies and Trading & Frozen Food divisions.

The group generated earnings per share of 2.77 sen, versus 3.86 sen a year earlier. No dividend was declared for the quarter.

Revenue rose 2.7 per cent to RM198.2 million. By segment, Food Services contributed RM112.6 million (-8.8 per cent YoY), Trading & Frozen Food RM42.1 million (+13.3 per cent YoY) and Dairies RM43.5 million (+34.3 per cent YoY). In terms of pre-tax profit, Food Services earned RM11.0 million, Trading & Frozen Food RM2.3 million and Dairies RM1.3 million.

Gross margin slipped to 42.8 per cent from 46.2 per cent as competitive pricing in the trading arm and a larger revenue share from the lower-margin dairies unit weighed on profitability. Administrative expenses climbed 13.7 per cent on higher legal, recruitment and staff costs, while selling and marketing costs rose 3.8 per cent mainly on staff incentives and maintenance.

The group reported RM6.2 million in other income, more than double the previous year, lifted by RM2.1 million in foreign-exchange gains and a RM2.5 million gain from lease modifications. Finance costs were broadly stable at RM3.6 million.

Strategically, Envictus plans to open at least 15 new Texas Chicken outlets in FY26, including its first store in Sabah, and will pursue kiosk-style formats and product range optimisation for its San Francisco Coffee chain to mitigate rising labour and rental costs. In Trading & Frozen Food, the focus is on expanding omni-channel sales and leveraging demand along the Johor–Singapore corridor, while the Dairies unit targets wider domestic distribution and new export markets, supported by lower input costs and refreshed product offerings.

Management said the Malaysian economy’s resilient domestic demand and easing input prices, notably for sugar and milk powder, should underpin performance, although geopolitical risks and cost pressures remain. The group will maintain disciplined cost control and selective expansion to support sustainable growth over the next 12 months.