BFood’s 4Q profit up with better Starbucks results

by **Cals** Wed 18 Jun 2014, 02:53

Business & Markets 2014

Written by Charlotte Chong of theedgemalaysia.com

Tuesday, 17 June 2014 09:38

KUALA LUMPUR: Berjaya Food Bhd (BFood) saw its net profit for the fourth quarter ended April 30 of financial year 2014 (4QFY14) rise 6.22% to RM5.28 million, aided by better results from Berjaya Starbucks Coffee Company Sdn Bhd.

Revenue came in 3.41% higher at RM36.55 million, from RM35.35 million previously, while earnings per share have improved to 1.98 sen from 1.91 sen a year ago.

In a press statement yesterday, the food and beverage firm said the share of better results from Berjaya Starbucks helped to mitigate the weaker results of Kenny Rogers Roasters (KRR) operations for the quarter.

“The current-quarter results of KRR operations in Malaysia were lower than the previous year’s corresponding quarter as Malaysian consumers are still cautious and prudent in their spending,” it said, adding that the KRR operations in Indonesia are currently incurring losses as it is still in its gestation period.

The group attributed the higher revenue to contribution from the newly opened Starbucks Coffee outlet in Brunei.

As for the full year ended April 30, BFood registered an increase in net profit by 23.6% to RM23.02 million from RM18.63 million a year ago. Revenue rose 21.6% to RM148.19 million from RM121.92 million.

The increase in earnings was due to better results from Berjaya Starbucks while improved revenue was also due to the consolidation of the full-year revenue of Jollibean Foods Pte Ltd and the opening of new KKR outlets.

Moving forward, BFood said the board of directors is of the view that the Malaysian economy will be challenging in the next financial year.

“However, the group will maintain its strategy of opening additional restaurants in the next financial year in all the markets that the group is operating in.”

The board has declared a second interim dividend of 2.5 sen or 5% single-tier tax-exempt dividend per share in respect of FY14, which will be payable on July 25.

This article first appeared in The Edge Financial Daily, on June 17, 2014.