Berjaya Food incurs second straight quarterly loss in 3Q, expects improved performance in next quarter

Berjaya Food incurs second straight quarterly loss in 3Q, expects improved performance in next quarter

KUALA LUMPUR (May 23): Berjaya Food Bhd (KL:BJFOOD) or BFood incurred a net loss of RM29.76 million for the third quarter ended March 31, 2024 (3QFY2024), its second straight quarterly loss amid lower revenue because of an ongoing boycott of its franchised coffee chain Starbucks Malaysia over the current Middle East conflict.

In the corresponding period last year (3QFY2023), the food and beverage group made a net profit of RM15.94 million.

Loss per share came in at 1.68 sen for 3QFY2024, against earnings per share of 0.91 sen a year earlier, a company filing with Bursa Malaysia revealed on Thursday. Revenue for the quarter declined 47.85% to RM138.65 million compared to RM265.85 million a year ago.

On quarter-on-quarter basis, Berjaya Food's net loss narrowed from RM42.58 million in 2QFY2024, while revenue was 24.05% lower from RM182.55 million

Cumulatively, for the first nine-month period of the year (9MFY2024), BFood posted a net loss of RM53.31 million versus a net profit of RM86.13 million in the previous corresponding period. Revenue dropped 28.96% to RM599.74 million from RM844.22 million over the same period.

In addition to the Middle East conflict, the results were also due to the one-off loss from the disposal of the company's entire equity interest in Jollibean Foods Pte Ltd, it said.

Nonetheless, Berjaya Food expects its operating performance to gradually improve over the next remaining quarter for the financial year ending June 30, 2024 (FY2024).

Shares of BFood closed one sen or 1.63% lower to 60.5 sen on Thursday, valuing the group at RM1.17 billion.