KFCH 2Q net profit just up 1.7% to RM36.35m

KUALA LUMPUR: KFC Holdings Bhd’s earnings rose at a slower pace of 1.7% to RM36.35 million in the second quarter ended June 30, 2011 from RM35.73 million a year ago due to better cost efficiencies from its KFC Restaurant business.

It said on Wednesday, Aug 24 that revenue increased by 13.8% to RM690.09 million from RM606.21 million a year ago.

Earnings per share increased from 4.50 sen (previously 18.02 sen, adjusted for share split and bonus issue) from a year ago in the previous year quarter to 4.58 sen in the current quarter. It declared an interim dividend of 3.0 sen compared with 10 sen a year ago.

For the first half, its earnings increased by 3.6% to RM72.48 million from RM69.97 million while revenue recorded a 10.6% increase to RM1.334 billion from RM1.206 billion.

The KFC restaurants segment registered a 12.4% revenue growth to RM1.010 billion (2010 : RM898.4 million) while the integrated poultry segment recorded a 7.1% revenue growth to RM272.8 million (2010 : RM254.7 million).

“The group’s revenue for the period under review improved primarily from its continuing strategy of network expansion and its effective KFC marketing programmes. The growth in the integrated poultry segment was attributed to better sales to the restaurants and retail outlets and the continuing improvement in its local open market sales and export sales,” it said.

It said the restaurant segment profit growth of 12.7% to RM106.7 million(2010 : RM94.7 million) was primarily due to its Malaysian Operations.