PETALING JAYA: Berjaya Food Bhd (BFood) posted a net profit of RM4.61 million and RM180.44 million in revenue for the first quarter ended Sept 30, 2019.
It has recommended a first interim dividend of 1 sen dividend per share for the quarter under review, payable on Dec 27, 2019.
The group’s profit before tax for the current quarter under review was adversely impacted by the adoption of MFRS 16: Leases. MFRS 16 requires depreciation be charged on the right-of-use assets and interest expenses be incurred on lease liability instead of lease rental expenses, which was required by the previous accounting standard for leases, MFRS 117, to be charged out in profit and loss.
BFood is engaged in developing and operating the Starbucks Coffee brand in Malaysia and Brunei, Kenny Rogers Roasters chain in Malaysia as well as Jollibean and various brands in Singapore.
The key factors that affect the performance of all food and beverage businesses include mainly the festive seasons, tourism, eating out culture, raw material costs (coffee bean, chicken, side dishes, soy bean and effect of foreign exchange on raw materials, etc), staff costs and consumer perception.
BFood said the overall results for the remaining quarters of the financial year ending June 30, 2020 will be adversely impacted by the adoption of MFRS 16 as almost all the group’s operating outlets are on lease.
“Nevertheless, the group expects to mitigate this adverse impact with Starbucks maintaining its revenue growth momentum, and the group expanding both its income streams from new franchise business and its existing business.”
With these, it is anticipated that the operating results of the group will remain satisfactory in the remaining quarters.
