Berjaya Food net profit higher from Starbucks boost

PETALING JAYA: Berjaya Food Bhd’s (BFood) net profit rose 21% to RM7mil for the second quarter (Q2) ended Oct 31, 2018, from RM5.8mil in the corresponding quarter last year on higher contributions from its Starbucks operations in tandem with higher revenue.

In its filings, the group said its Q2 revenue rose 3.6% to RM166.6bil from RM160.8mil in the corresponding period mainly due to the same-store-sales growth recorded by Starbucks as well as additional Starbucks cafes operating in Malaysia.

BFood’s earnings per share (EPS) rose to 1.89 sen from 1.55 sen previously. The group declared a second interim dividend of one sen per share.

During the quarter in review, BFood registered an increase in pretax profit to RM11.46mil from RM9.51mil in the previous corresponding quarter.

“The group’s profit from operations improved 12% mainly due to higher profit contributions from Starbucks operations in tandem with the higher revenue achieved,” it said.

“In addition, the group had ceased consolidation of the losses from its Kenny Rogers Roasters operations in Indonesia following its disposal in the previous financial year. The pretax profit increased accordingly in tandem with the increase in profit from operations,” it said.

For the six months to October 2018, BFood’s net profit rose 19% to RM13.3mil from RM11.2mil in the previous corresponding period, and its cumulative EPS rose to 3.54 sen from 2.97 sen previously.

The group’s six-month revenue rose 4% to RM328mil from RM315.2mil previously. It attributed the increase in revenue to higher growth recorded by existing Starbucks cafes as well as additional Starbucks cafes operating in Malaysia.

BFood’s shares fell two sen to close at RM1.33 yesterday.