Berjaya Food’s Triumph and Challenges: Unveiling 1Q Financial Performance in 2024

KUALA LUMPUR: Berjaya Food Bhd faced challenges in the first quarter of its 2024 financial year as rising costs impacted margins, leading to a contraction in net earnings. The restaurant chain operator reported a net profit of RM19.03 million for the quarter, a significant decline from the RM34.7 million recorded in the same period in 2022. Earnings per share fell to 1.08 sen from 1.96 sen, reflecting the margin pressure.

The group’s revenue experienced a marginal decline, reaching RM278.53 million compared to RM283.05 million in the corresponding quarter. The lower sales of Kenny Rogers Roasters in Malaysia contributed to this dip. In response to the challenging conditions, the group declared a first interim share dividend of one treasury share for every 100 ordinary shares held, amounting to 0.44 sen per share, with the entitlement date set for Dec 14, 2023.

Berjaya Paris Baguette Sdn Bhd outperformed expectations, with new outlet openings proceeding as planned. Berjaya Starbucks, affected by recent Middle East conflicts, is anticipated to regain revenue growth momentum once market conditions normalize. The board emphasized its commitment to cost optimization, labor/productivity management, and effective marketing strategies for the remaining quarters of the financial year.

Looking ahead, the board expressed confidence that all operating companies within the group would remain on track for the financial year ending June 30, 2024. Despite the challenges, the group is strategically focused on maintaining performance and navigating market uncertainties.

In a separate announcement, Berjaya Food Bhd revealed the redesignation of its CEO, Datuk Sydney Lawrance Quays, as the new group CEO, effective immediately. The company’s shares closed unchanged at 26 sen, with a market capitalization of RM1.33 billion.