BFood posts three-fold growth in Q2 earnings

Kenny Rogers Roasters shop

KUALA LUMPUR: Berjaya Food Bhd’s (BFood) net profit jumped more than three-fold to RM38.88mil for its second quarter ended Dec 31, 2021 from RM11.12mil in the previous corresponding period, spurred by improved performance from its Kenny Rogers Roasters (pic) operations in Malaysia.

In a filing with Bursa Malaysia yesterday, the company said revenue in the second quarter grew about 57% to RM272.75mil from RM174.10mil in the previous corresponding period.

“With the resumption of interstate and overseas travel since Oct 11, 2021, along with the calendar year-end festive sales and Christmas season, the group recorded a significant increase in revenue.

“The higher revenue was mainly due to higher same-store-sales growth particularly from Starbucks cafe outlets.”

For the six-month period ended Dec 31, 2021, BFood’s net profit doubled to RM50.50mil from RM21.49mil in the previous corresponding period, while revenue increased to RM460.47mil from RM354.82mil a year earlier.BFood has also declared a second interim single-tier dividend of one per share in respect of its financial year ending June 30, 2022, to be payable on March 30, 2022. The entitlement date has been fixed for March 15, 2022.BFood is primarily engaged in developing and operating the Starbucks Coffee brand in Malaysia and Brunei, developing and operating the Kenny Rogers Roasters chain in Malaysia as well as Jollibean and various brands in Singapore.

Prior to the Covid-19 pandemic, BFood said key factors that affected the performance of its businesses include mainly the festive seasons, tourism, eating out culture, raw material costs, staff costs and consumer perception.

“Upon the onset of the Covid-19 pandemic since March 2020 to date, key factors such as tourism, eating out culture and certain raw material costs arising from supply chain and logistic issues are adversely impacted by the various restrictive measures implemented by the government to curb the Covid-19 pandemic,” the company said in the filing with the stock exchange.

With further easing of restrictions and the resumption of interstate and overseas travel, BFood chief executive officer Datuk Sydney Quays said the company’s directors expect the overall operating results of the group to improve gradually for the remaining quarters of the financial year ending June 30, 2022.

“While the year has been extremely challenging in many aspects, the vast improvement in our second quarter results is testament to the resilience of the various businesses within the group.

“We hope to continue our growth trajectory as the country gradually recovers from the pandemic,” he said.