KUALA LUMPUR (June 29): Apollo Food Holdings Bhd’s (KL:APOLLO) posted record revenue for the financial year ended April 30, 2026 (FY2026) but saw earnings weighted down by higher operating costs.

FY2026 revenue rose 4.3% to RM311.21 million — its highest full year-revenue since listing — from RM298.42 million a year earlier, driven by stronger sales following changes to its route-to-market transformation strategy, according to a statement on Monday. 

However, net profit fell 14.2% to RM34.49 million from RM40.18 million, dragged by higher personnel, advertising and transportation costs.

For the fourth quarter ended April 30, 2026 (4QFY2026), net profit grew 4.5% year-on-year to RM9.88 million from RM9.46 million, while revenue climbed 11% to RM81.3 million from RM73.27 million. 

The higher revenue for 4QFY2026 was attributed to an increase in domestic and export sales. Net profit gained from higher sales revenue and expanded gross margins but the effect was partially offset by elevated operating costs.

Apollo declared a second interim dividend of 30 sen per share, payable on July 22, bringing total dividends for FY2026 to 45 sen per share — which is a payout ratio of 104% for the year.

Apollo managing director Cheah Jia Ming said that the group is expanding its layer cake manufacturing capacity and is in the final stages of installing two new layer cake production lines. The new lines is expected to lift output by around 40% upon commissioning in 2QFY2027.

“This expansion will enable us to capture new opportunities and further strengthen our presence in both the Malaysian and export markets,” said Cheah. 

Cheah added that navigating ongoing inflationary headwinds remains a strategic priority for the group as it scales its operations.

“To mitigate persistent cost pressures across both raw and packaging materials, we proactively manage our procurement and secure inventory at strategic intervals. Concurrently, we are driving operational improvements and increasing automation across our manufacturing processes to enhance productivity, strengthen competitiveness,” he added.

Shares of Apollo Food were up by 15 sen or 2.6% to RM5.85 at Monday’s market close, giving the group a market capitalisation of RM468 million. Year to date, the counter is down by 6.4%.