KUALA LUMPUR (Dec 9): Berjaya Food Bhd's (BFood) net profit increased more than 36-fold to RM163.6 million for the second financial quarter ended Oct 31, 2014 (2QFY15) from RM4.46 million a year ago due to a one-time investment gains of RM158.6 million.

In a filing with Bursa Malaysia today, BFood said the significant rise in 2QFY15 net profit was due to gains arising from re-measurement of the acquisition of 50% equity interest in Berjaya Starbucks Coffee Co Sdn Bhd (BStarbucks) previously held by the group.

The acquisition of the remaining 50% equity interest in BStarbucks was completed on Sept 18 this year for US$88 million (RM279.51 million), it added.

Excluding the one-time net gain, the group's net profit only grew 32.4% or RM1.64 million to RM6.7 million versus RM5.06 million in 2QFY14.

Revenue for 2QFY15 jumped 123% to RM75.32 million from RM33.72 million a year ago, mainly due to the consolidation of BStarbucks, as well as contribution from the Starbucks operations in Brunei, which commenced operation in February this year.

Earnings per share for 2QFY15 rose substantially to 53.71 sen from 1.69 sen in 2QFY14.

The group also declared its first interim dividend of 2.5 sen per share for the financial year ending April 30, 2015 (FY15), payable on Jan 22, 2015.

For the six months ended Oct 31, 2014 (1HFY15), its net profit jumped 1652.1% to RM169.6 million from RM9.68 million a year ago, while revenue grew 63.65% to RM114.95 million from RM70.24 million.

Excluding the one-time investment gains of RM158.6 million, its net profit climbed 15% to RM12.96 million in 1HFY15 compared with RM11.24 million in 1HFY14. 

Earnings per share for 1HFY15 also increased substantially to 58.55 sen from 3.69 sen in 1HFY14.

“Traditionally, the first half of the financial year’s sales performance is lower than the second half as most of the festive seasons and school holidays fall into the second half of the financial year.

“The board of directors is confident that with the consolidation of the results of BStarbucks, the revenue and operating profit of the group are expected to improve significantly for the remaining quarters of FY15,” said BFood.

Shares in BFood closed down 10 sen or 3.46% at RM2.79 today, with 850,100 shares changing hands. With the closing price, it has a market capitalisation of RM1.03 billion.