KUALA LUMPUR (Nov 27): Brahim’s Holdings Bhd’s net profit for its third quarter ended Sept 30, 2014, plunged 84% to RM1.0 million, from RM6.5 million a year go, mainly due to lower contribution from its in-flight catering segment.

Meanwhile, revenue fell 10% to RM89.7 million, from RM100.1 million.

Accordingly, its earnings per share was lower at 0.43 sen, compared to 3.01 sen a year earlier.

Brahim’s reported its in-flight catering and related services segment posted significantly lower profit for the quarter — down 58% to RM8.9 million, from RM21.2 million a year ago.  

“The poorer results arose from Malaysian Airline System Bhd reduction in unit cost of food services, as part of their strategy to counter declining passenger loads caused by the MH17 incident,” it said.

Its food and beverage segment posted wider losses of RM645,000, compared to RM329,000 a year ago.

Meanwhile, its logistic and related services saw a 72% year-on-year jump in net profit to RM596,000, from RM347,000.

For the cumulative period, Brahim registered a 34% decline in its net profit to RM6.7 million, from RM10.2 million; while revenue fell 4% to RM274.5 million, from RM285.7 million.

EPS fell to 2.88 sen, from 4.74 sen.  

Going forward, the group said its in-flight catering segment should show marginal improvement, due to an expected increase in passenger load as the year-end holiday season approaches.

For its loss-making food and beverage segment, Brahim’s said it will continue to work on turning the segment around.

It said its joint venture company with Dewina Host Sdn Bhd will continue to enlarge its business footprint in klia2.

“It has started operating the Premium Food Court, and a fast food outlet located at the airside of International Departure Hall, KLIA2.

“The food court — measuring 2,572 sq. meters, offering nine food concepts, serving mainly Asian and International cuisines — has to-date opened three outlets. Revenue is expected to improve, in tandem with increasing traffic flow in klia2, and with all the food and beverage outlets opened by the next quarters,” said Brahim’s.

The counter was down 1 sen or 0.67% at RM1.49, bringing market capitalisation to RM349.70 million.