KUALA LUMPUR (Sept 29): Confectioner Apollo Food Holdings Bhd (KL:APOLLO) posted a 9.5% increase in net profit for its first quarter as stronger sales helped offset higher costs.

For the three months ended July 31, 2026 (1QFY2027), net profit rose to RM6.96 million from RM6.36 million the previous year, while revenue grew 13.36% to RM73.76 million from RM65.07 million, driven by higher export sales, particularly in its core Indonesian market.

No dividend was declared for the quarter.

Though the first quarter is traditionally a seasonally weaker period, demand for the group’s products “remained stable” year-on-year, said Apollo Food managing director Cheah Jia Ming in a statement. 

“We observe that consumers are becoming increasingly selective, and our accessible price points have provided a degree of stability in a tightening spending environment,” he said.

Cheah said the group is reassessing its sales domestic strategy to better align with changing consumer habits.

“We expect these ongoing refinements to build a more resilient foundation, even as we navigate near-term volume fluctuations in the broader market,” he said.

Apollo Food said additional capacity provided by two new layer cake production lines, expected to be fully operational by the fourth quarter, will give it flexibility to meet shifts in domestic and export markets.

Cheah added that the group is optimising procurement and inventory management to mitigate higher raw material, packaging and freight expenses amid ongoing geopolitical tensions. 

“To manage this complex environment, the board is prioritising operational efficiencies and route-to-market execution to help mitigate margin pressure going forward,” it said.

Shares of Apollo Food closed unchanged at RM5.79 on Tuesday, valuing the group at RM463.2 million.

The stock has fallen 7.7% from this year’s peak of RM6.27 on July 9.