Berjaya Food posts RM5m net profit in Q1

PETALING JAYA: Berjaya Food Bhd (BFood) saw its net profit fall to RM5 million for the first quarter ended July 31, 2016 from RM6.11 million in the previous corresponding period, due to the depreciation of the ringgit, which impacted the profit margin of Starbucks as well as lower contribution from the Kenny Rogers Roasters operations in Malaysia.
Revenue, however, increased 6.8% from RM132.41 million to RM141.37 million, thanks to higher sales from existing cafes as well as additional cafes operating in the quarter.
The group has proposed to declare an interim dividend of 0.5 sen per share.
BFood said with weak consumer sentiment brought on by the introduction of the Goods and Services Tax and other economic factors, the group will be operating in a very challenging environment in the remaining quarters.
Nevertheless, the group expects Starbucks to maintain its revenue growth momentum, especially with its new FMCG business, and this will contribute positively to its operating results.