Apollo Food Holdings Berhad Delivers Record 3Q FY2026 Revenue, Driven by Domestic Growth and Strategic Distribution Realignment

Key Financial Highlights

• Record Quarterly Revenue: Apollo Food Holdings Berhad (“Apollo” or “the Company”) achieved its highest-ever quarterly revenue of RM89.6 million in the third quarter ended 31 January 2026 (3Q FY2026), marking a significant 19% increase quarter-on-quarter (QoQ) and 18% rise year-on-year (YoY).
• Core Net Profit Growth: Excluding disposal gains, core net profit surged by 43.9% QoQ and 7.5% YoY to reach RM10.7 million, fueled by robust revenue growth even amid higher operating costs.
• 9-Month Performance: For the nine months ended 31 January 2026 (9M FY2026), Apollo reported revenue of RM229.9 million and a core net profit of RM24.5 million.

Strategic Developments and Distribution Realignment

• The Company attributed its impressive performance to increased domestic market volume, following a strategic realignment of its distribution strategy. After a two-quarter transition period, these initiatives have resulted in improved distribution efficiency, more effective channel execution, tighter marketing controls, and broader market coverage.
• Apollo’s expansion into the modern trade channel continues to gain momentum, contributing significantly to revenue during the quarter. The Company’s products are now available in several major retail chains, with additional partnerships anticipated.
• This modern trade presence has enabled Apollo to tap into new customer segments and has supported the rollout of its “Apollo 2.0” initiative, which is expected to drive further growth in upcoming quarters.

Operational Outlook and Cost Management

• The Company is proactively managing costs in response to ongoing volatility in certain input materials, despite signs of stabilization in the broader market.
• Management expressed confidence in sustaining top-line growth, citing current positive momentum in strategic initiatives and ongoing capacity expansion projects.
• Operational efficiencies are expected to continue improving, with management anticipating a gradual enhancement in profit margins over the medium term.

Management Commentary

“Our 3Q FY2026 results reflect steady growth driven primarily by increased volume in the domestic market, following the recent strategic realignment of our distribution strategy. After a two-quarter transition period, these initiatives have led to improved distribution efficiency, steady channel execution, tighter marketing control, and broader market cover. Our expansion into the modern trade channel continues to gain traction, contributing meaningfully to the Group’s revenue during the quarter. With our strategic initiatives showing positive progress and capacity expansion underway, we are confident in our ability to drive top-line growth. As operational efficiencies continue to strengthen over time, we anticipate gradual margin improvement in the medium term.”

– Mr. Cheah Jia Ming, Managing Director

Implications for Shareholders

• Shareholders should note the Company’s record-high revenue and solid profit growth, which may positively influence market sentiment and share value.
• The success of the distribution realignment and expansion into modern trade channels not only supports current earnings but may also open new revenue streams and boost Apollo’s market position.
• Ongoing capacity expansion and improved operational efficiencies could lead to margin enhancement, which is a key metric for long-term shareholder value.
• However, there remains some risk from input cost volatility, which the Company is actively managing through strict cost control measures.

About Apollo Food Holdings Berhad

Apollo Food Holdings Berhad and its subsidiaries are leading manufacturers and distributors of chocolate confectionery products and layer cakes, with a strong, recognizable brand in Malaysia’s domestic and export markets.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to conduct their own research and consult with professional advisors before making investment decisions.

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