Brahim’s 2Q net loss narrows as in-flight catering business improves

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KUALA LUMPUR (Aug 30): Brahim’s Holdings Bhd continues to bleed red ink, posting a net loss of RM1.19 million for the second quarter ended June 30, 2019 (2QFY19).

However, Brahim's – which has been loss-making since the quarter ended June 30, 2015 – managed to narrow its net loss for 2QFY19 from RM3.16 million a year ago, thanks to contribution from its in-flight catering and related services segment.

In a bourse filing today, Brahim's said this segment recorded an operating profit of RM740 million compared with a loss of RM4.27 million a year ago.

This resulted in a lower loss per share of 0.44 sen for 2QFY19 compared with 1.18 sen for 2QFY18. Revenue for the current quarter under review was up 14.9% to RM74.05 million from RM64.42 million a year ago.

For the cumulative six months (1HFY19), Brahim's also narrowed its net loss to RM3.41 million from RM5.31 million a year ago on the back of an 8.4% increase in revenue to RM144.3 million from RM133.09 million in 1HFY18.

On prospects, Brahim's warned that following a tough 2018, slow recovery is expected from its in-flight catering and related services segment with only marginal profit to be recognised by end-2019.

"The 3QFY19 outlook for this division is expected to remain positive in view of expected revenue improvement from an increase in meals supply to the airlines. The number of meals has shown a growth trend from both Malaysia Airlines Bhd and foreign carriers," it added.

As for its logistics and related services segment, Brahim's noted that it continues to maintain its business volume and will contribute positively to the group’s financial position.

"We will continue the effort to acquire new customers and businesses to increase revenue," it added.

At 4.20pm, Brahim's shares were up 3 sen or 20.69% at 17.5 sen, with 4.64 million shares done, bringing a market capitalisation of RM41.35 million.