PETALING JAYA: Berjaya Food Bhd (BFood) registered a revenue of RM158.6 million and a net loss of RM1.4 million in the third quarter ended March 31, 2020, due to the impact from the Covid-19 pandemic.
There are no comparative figures as the financial year-end has been changed from April 30 to June 30.
BFood said although the movement control order (MCO) was imposed by the Malaysian government from March 18 onwards, which was almost at the end of the current quarter, many consumers had already taken precautions by staying away from places with crowds such as shopping malls, restaurants, and other public spaces.
In addition, since January 2020, the pandemic had severely affected the tourism industry resulting in the number of tourists to Malaysia and Singapore to reduce drastically.
“As a result, the group experienced a reduction in sales and recorded negative same-store-sales growth for the current quarter. The drop in sales caused a significant reduction in gross profit contributions, which was insufficient to offset the fixed costs (such as depreciation and rental expenses) in some outlets,“ BFood said in a statement today.
Consequently, the group incurred a pretax loss in the current quarter under review. The group’s results were also adversely impacted by the adoption of MFRS 16: Leases. The group would have reported a pretax profit of RM1.34 million, if the total lease rentals of all the leased outlets were accounted for under the previous accounting standard for leases.
For the nine month period, BFood reported a revenue and net profit of RM523.15 million and RM11.24 million respectively. The group noted that its pretax profit would have been RM27.13 million, if the total lease rentals of all the leased outlets were accounted for under the previous accounting standard for leases.
On prospects, BFood said the imposition of the MCO in Malaysia and the circuit breaker in Singapore had caused the operations in these two countries to be below full capacity.
“Even with the gradual relaxation of the conditional MCO, the new standard operating procedures such as social distancing measures that need to be implemented, will also restrict operations from operating at full capacity. As such, this will have significant impact on the results of the group for the remaining quarter of the financial year ending June 30, 2020.”
Nevertheless, the group said it has taken various austerity measures and initiated marketing initiatives via various delivery channels to mitigate the impact on its sales.