SINGAPORE (Nov 29): Envictus International managed to cut FY18 loss by 48% to RM27.9 million ($9.16 million) from a loss of RM53.5 million in FY17.

Revenue for the final year ended September came in 3% higher at RM422.6 million from a year ago, mainly contributed by higher contribution from the group’s Food Services Division and the new Dairies Division. However, these increases were impacted by lower revenue contribution from the Trading and Frozen, Food Processing and Nutrition Divisions.

The Food Services Division saw revenue growth of 33.6% y-o-y to RM172.5 million, with the Texas Chicken outlets continuing to be the top performers. San Francisco Coffee also added another eight stores to its chain, resulting in a 25.5% revenue increase to RM29.0 million; while Delicious restaurants saw a 33.9% y-o-y growth to RM8.3 million with introduction of new menu and more marketing activities.

The group’s new Dairies Division which commenced business in Jan added sales of RM19.8 million.

As cost of goods sold dropped by 2.5% y-o-y to RM267.6 million, gross profit for FY18 was RM155.0 million, 14.1% higher than RM135.8 million in the previous year.

Other operating income was 9.2% higher y-o-y at RM18.2 million, while operating expenses dropped by 2.0% to RM193.0 million.

As at end Sept, the group’s cash and cash equivalents stood at RM16.4 million.

Jaya Tan, group chairman of Envictus, says, “We will continue to build upon Texas Chicken’s resounding success to increase our presence both locally and in Indonesia.”

“As for San Francisco Coffee, we have opened two new outlets in October, at Capital City Mall and Selangor Bio Bay, with plans to open another two in 1Q19, and another three by 2Q19 which includes our first standalone store at Caltex petrol station, Ampang. To better cope with competition, Delicious is offering some new seasonal menu across our three rebranded outlets to maintain our competitive edge,” Tan adds.

Shares in Envictus last traded at 14 cents on Wednesday.