KUALA LUMPUR (Nov 15): Berjaya Food Bhd’s (BJFood) net profit for the first quarter ended Sept 30, 2023 (1QFY2024) fell by 45.16% to RM19.03 million from RM34.7 million reported in the same quarter last year as inflationary cost pressures squeezes its margins.

As a result, earnings per share dropped to 1.08 sen from 1.96 sen, its bourse filing showed. Revenue dipped 1.6% to RM278.53 million from RM283.05 million, mainly due to lower sales from its Kenny Rogers Roasters’ restaurants in Malaysia.

The group declared a first interim share dividend of one treasury share for every 100 ordinary shares held, which is equivalent to a 0.44 sen per share distribution or a total of RM7.72 million, in respect of FY2024 to be paid on Dec 29 — with Dec 14 being the entitlement date. It distributed a first interim share dividend of 0.5 sen for FY2023.

Quarter on quarter, the cafe and restaurant chain operator’s net profit is 10.13% higher than the RM17.28 million registered in 4QFY2023 while revenue inched up 2.49% from RM271.75 million.

Moving forward, the group expects all its operating companies' performance to remain on track for the remaining quarters of FY2024.

“Berjaya Paris Baguette Sdn Bhd continues to perform at a better than expected level and new outlet openings are proceeding as planned. Berjaya Starbucks is expected to return to its revenue growth momentum once the challenging market conditions brought about by the recent conflict in the Middle East are back to normality.

“To mitigate some of the challenging market conditions, the group is focusing on cost optimisation, labour/productivity management and effective marketing strategies over the remaining quarters of FY2024,” it added.

Separately, in another Bursa filing, the group announced the redesignation of its chief executive officer (CEO) Datuk Sydney Lawrance Quays as its new group CEO effective immediately.

Shares in BJFood closed unchanged at 26 sen on Wednesday, giving it a market capitalisation of RM1.33 billion.