This article first appeared in The Edge Financial Daily on December 14, 2017 - December 20, 2017

KUALA LUMPUR: Berjaya Food Bhd (BFood) saw a 15.5% rise in net profit to RM5.81 million in the second financial quarter ended Oct 31, 2017 (2QFY18) from RM5.03 million a year ago, attributed to higher pre-tax profit recorded by Starbucks’ operation in Malaysia.

Lower losses incurred by the Kenny Rogers Roasters (KRR) operation in Indonesia arising from further closure of non-performing outlets also helped boost profits.

Earnings per share grew to 1.55 sen in 2QFY18 from 1.34 sen in 2QFY17. Quarterly revenue rose 7.8% to RM160.78 million from RM149.11 million in 2QFY17, mainly due to additional Starbucks cafes operating in the current quarter under review.

It also declared a second interim dividend of one sen per share for the financial year ending April 30, 2018 (FY18), payable on Jan 26, 2018.

For the cumulative six months (6MFY18), the group’s net profit rose 11.1% to RM11.15 million from RM10.04 million a year ago. Revenue was up 8.5% to RM315.17 million from RM290.48 million in 6MFY17.

On prospects, BFood warned that the group’s results in 3QFY18 is expected to be adversely impacted by an one-off loss from the disposal of the KRR operation in Indonesia.

“Other than this one-off exceptional loss, the group expects Starbucks to maintain its revenue growth momentum and continue contributing positively to the group,” it said in a statement yesterday.

“The management also hopes the operational and menu rationalisation of KRR, implemented recently, will yield better results for the brand moving forward,” it added.