Envictus’ net profit jumps to RM2.6m in Q1

Thanks to better performance in three of its segments.

Envictus International Holdings (Envictus) closed the first quarter of FY16 with a net profit of RM2.6m, thanks to 7.7% revenue growth to RM9m.

According to the company, revenue growth is on back of better performance achieved by the company’s food services, trading and frozen food segments.

Envictus’ gross profit margin recorded inched up 1.7 percentage points to 28.6% during the quarter, due mainly to the higher margin achieved by the food services division. This led to increased prices in certain products as well as improved food cost management. Accordingly, gross profit inched up to RM26m.

Meanwhile, selling and marketing expenses of RM2.4m and administrative expenses of RM1.6m caused operating costs to surge 15.2% to RM28.5m. These were largely on back of additional staff, rental of outlets, royalty fees, and utility charges incurred for the expansion of the food services segment.

Looking forward, the group reports that it will be on the look-out for M&A opportunities.