Brahim’s 2Q net profit falls 71% to RM1.56 million y-o-y

by **Cals** Tue 26 Aug 2014, 23:31

Business & Markets 2014

Written by Jonathan Gan of theedgemalaysia.com

Tuesday, 26 August 2014 19:11

KUALA LUMPUR (Aug 26): Brahim’s Holdings Bhd’s second quarter net profit ended June 30, 2014 fell 71% to RM1.56 million, from RM5.46 million a year ago.

The company acknowledged that its in-flight catering and related services had shown a decline, as compared to the corresponding quarter in the previous year.

“The [in-flight catering segment’s] revenue for the current quarter was lower by RM6.28 million or 6.28%, closing at RM89.57 million compared with the revenue of RM95.84 million in the corresponding quarter of the previous year,” the company said.

Meanwhile, group revenue for the quarter fell to RM92.34 million, from RM98.25 million a year ago.

Nevertheless, Brahim’s net profit for the six months was higher at RM5.72 million, from RM3.69 million a year ago. Cumulative revenue for the six months fell marginally to RM184.81 million, from RM185.63 million.

On prospects, the company said its in-flight catering segment is expected to be sustainable due to normal increases in passenger load in the second half of 2014.

“Revenue from Malaysian Airline System Bhd is expected to improve due to their aggressive price promotions.

“However, market reaction arising from the MH370 and MH17 incidents may impact MAS’ flight demand, and its looming restructuring exercise may also impact catering routes assigned to Brahim Holdings Catering,” the company said.