Envictus International Holdings Limited (EIHL) has posted a net profit of RM16.4 million ($4.68 million) for 1HFY2024 ended March 31, up from a net loss of RM12.5 million in the corresponding period.
Revenue rose 12.2% y-o-y to RM314.1 million in 1HFY2024, from RM280.1 million in 1HFY2023, mainly attributed to the increased contributions from the food services and dairies divisions.
Profit before tax of RM18.4 million was derived from food services division of RM11.3 million, trading and frozen food division of RM4.7 million, dairies division of RM1.4 million and balance RM1.0 million from food processing division and non-operating companies.
Revenue from the food services division edged 22.7% higher y-o-y to RM185.2 million in 1HFY2024.
According to EIHL, this was primarily driven by the contributions from Texas Chicken restaurants, partially offset by the underperformance from San Francisco Coffee chain.
Operating expenses increased 11.3% y-o-y to RM127.9 million, primarily attributable to higher selling and marketing expenses, which increased by RM7.1 million.
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Selling and marketing expenses increased by RM7.1 million, due mainly to higher delivery commission of RM3.0 million on increased delivery sales, coupled with higher repair and outlet maintenance expenses of RM1.6 million.
As at March 31, the group’s cash and cash equivalents stood at RM18.5 million, while shareholders’ equity was RM172.8 million.
Listed on SGX Catalist in 2004, and upgraded to the Mainboard in 2009, F&B group EIHL has held exclusive rights to the Texas Chicken Franchise Agreement since July 2012.
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EIHL has since renewed the Agreement for a second 10-year period starting from May 2022, to develop and operate the fast growing Texas Chicken fast food restaurant chains in Malaysia and Brunei.
To further expand the group’s presence in key markets in Asia, the group will develop a total of 125 Texas Chicken restaurants spanning Malaysia and Brunei over a period of 10 years starting May 2022.
EIHL also owns Malaysian homegrown specialty coffee chain business San Francisco Coffee, which serves house-roasted coffee in Malaysia.
Presently, the group operates 92 Texas Chicken restaurants and 50 SFCoffee cafes.
For the trading and frozen food division, the group’s wholly-owned subsidiary, Pok Brothers Sdn Bhd, is a frozen food and premium food wholesaler and is a supplier to several major restaurant chains in Malaysia.
Held by the wholly-owned Motivage Sdn Bhd, the group’s dairies division manufactures condensed milk under the SuJOHAN brand.
Shares in Envictus closed flat at 29 cents on April 30.
