Envictus reports losses for FY15

SINGAPORE - Mainboard-listed food and beverage company Envictus International Holdings posted a net loss of RM363,000 (S$120,725) for the year ended Sept 30.

This is a reverse from the net profit of RM542.6 million in the previous year, which was boosted by profit from a discontinued business.

Revenue rose 6.7 per cent to RM327.4 million for the 2015 .

The company's gross profit margin has also improved from 19.1 per cent to 27 per cent.

Envictus attributed the improvement to strong sales, the reduction in food costs of Texas Chicken, better sales performance of the contract packing business, and exclusion of the loss making noodles business, which ceased operations in September 2014.

Net asset value per share for the group was 58.25 sen as at Sept 30, up from 54.51 sen a year before.

No dividend has been declared for the financial year ended 30 September 2015.

The company anticipates that the depreciation of the Ringgit against major currencies and a rise in prices of imported beef from Australia and New Zealand to impact its trading and frozen food division.

But it added that the group "has secured support from agency principals for other products in terms of higher promotion funding, discounts and the capping of prices until June 2016".

Envictus said its expansion pace of its Texas Chicken outlets "remains good" and it expects to open four more outlets in the Klang Valley area by the end of the first quarter of its 2016 financial year.

In announcing its financial results, Envictus said it has proposed to undertake a share consolidation of every five existing issued shares into one consolidated share to comply with the minimum trading price (MTP) of S$0.20 - a continuing listing requirement for issuers listed on the Mainboard of the SGX.

The proposal will be subject to shareholders' approval at the upcoming annual general meeting, it added.

wongsy@sph.com.sg