Berjaya Food’s 1HFY19 net profit broadly in line

KUCHING: Berjaya Food Bhd’s ( Berjaya Food) f irst hal f of financial year 2019 ( 1HFY19) net prof i t has broadly met expectations, on the back of Starbucks’ robust performance.

In a filing on Bursa Malaysia, Berjaya Food revealed that the group’s profit after tax for the six months ended October 31, 2018 amounted to RM13.24 million, up from RM10.18 million in the previous year’s corresponding period.

Berjaya Food’s 1HFY19 net prof it was broadly in line with AmInvestment Bank Bhd’s ( AmInvestment Bank) expectations, accounting for 56 per cent and 52 per cent of the research firm’s and street’s fullyear estimates respectively.

“Net profit grew 19 per cent year on year ( y- o-y) to RM13.3 mi l l ion due to Starbuck’s robust performance and the cessation of the consolidation of Kenny Rogers Roasters ( KRR) Indonesia’s loss-making operations,” it said.

“1HFY19 topline grew 4.1 per cent on the back of an additional 21 Starbucks stores, bringing the total number of outlets to 269 (versus 248 in 1HFY18).

“However, it was offset by a decline in the number of KRR division from 81 stores in the second quarter of FY18 (2QFY18) to 75 stores.

“We believe the group is still in the midst of weeding out loss- making outlets to ensure focused efforts are made in outlets with better profitability profile.”

On Starbucks, AmInvestment Bank noted that same- storesales growth (SSSG) improved 2.7 per cent.

The research firm believed this was due to the tax holiday period which coincided with 1HFY19, resulting in an improved consumer spending.