BFood posts first annual loss since 2011 as MCO hits

BFood posts first annual loss since 2011 as MCO hits
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KUALA LUMPUR (Aug 21): Berjaya Food Bhd (BFood), which runs the Starbucks and Kenny Rogers Roasters (KRR) chains in Malaysia, posted its largest quarterly net loss of RM30.16 million for the fourth quarter ended June 30, 2020, as its business was hit by the implementation of the movement control order and the subsequent conditional MCO.

There were no year-on-year comparative figures, as the group had changed its financial year end last year to June 30 from April 30, its stock exchange filing showed.

However, compared to the immediate preceding quarter (3QFY20), BFood's net loss widened from RM1.39 million, as revenue sank 29.7% to RM111.57 million from RM158.60 million.

It recognised an impairment of goodwill of RM2.35 million during the quarter under review, together with an impairment on property, plant and equipment of RM1.15 million, as the recoverable amounts are lower than their carrying amounts.

Fourth and worst quarterly loss by BJFood

Following the loss-making quarter, the group posted a net loss of RM18.93 million for the 12 months ended June 30, on a revenue of RM634.72 million. It was the group's first annual net loss since 2011.

In the 14-month ended June 30, 2019, it recorded a net profit of RM24.38 million a year ago, on a revenue of RM788.98 million.

Although the Covid-19 pandemic has adversely impacted the group’s operating results, the group said it is cautiously optimistic that its operating results will be satisfactory in its current financial year ending June 30, 2021 (FY21), with the gradual relaxation of the lockdown measures and recovery of the economy.

BFood shares closed one sen or 0.88% higher at RM1.15 today, valuing the group at RM406.78 million. The stock has fallen some 26% from RM1.56 over the past 12 months.