Berjaya Food registers RM5.03m Q2 net profit

PETALING JAYA: Berjaya Food Bhd’s net profit fell to RM5.03 million for the second quarter ended Oct 31, 2016 from RM6.2 million in the previous corresponding period, due to losses incurred by Kenny Rogers Roasters’ operations in Malaysia as a result of weak consumer sentiment.

However, revenue rose 10.1% from RM135.42 million to RM149.11 million, mainly driven by higher sales recorded by existing cafes as well as additional cafes operating in the quarter under review.

The group has proposed to declare an interim dividend of 1 sen per share.

In a filing with the stock exchange, Berjaya Food expects the group to operate in a very challenging environment for the remaining quarters of the financial year ending April 30, 2017 as the weakening of the ringgit has impacted its gross profit margin.

“Nevertheless, the group expects Starbucks to maintain its revenue growth momentum, especially with its new fast moving consumer goods business, and this will contribute positively to the operating results of the group going forward,” it noted.

For the first six months of the year, Berjaya Food reported an 18.5% decline in net profit from RM12.31 million to RM10.04 million, with revenue rising 8.5% from RM267.83 million to RM290.48 million.