Berjaya Food Hit By 4% Stock Drop After Results

Berjaya Food Hit By 4% Stock Drop After Results - Shares of Berjaya Food

Bhd (BFood) fell 4% as the company's slipped into a net loss in the three months to January 31.

BFood, which runs the Kenny Rogers Roasters and Starbucks chains in Malaysia, fell 4.37%, or eight sen to RM1.75 in early trade.

BFood slipped into the red in its third quarter ended Jan 31 (3QFY18) results, posting a net loss of RM10.85mil compared with a net profit of RM4.68mil a year earlier.

The group said the loss was due to a one-off loss amounting to RM15.38mil arising from the disposal of its Kenny Rogers Roasters operations in Indonesia.

Excluding the one-off disposal loss, Berjaya Food said it would have posted a pre-tax profit of RM10.55mil in 3QFY18, up 22.4% from RM8.62mil in 3QFY17.

The group has proposed to declare an interim dividend of 1 sen per share, payable on April 27.

For the nine-month period to Jan 31, BFood’s revenue increased 5.6% from RM454.02mil to RM479.61mil, while net profit was down from RM14.71mil to RM304,000.

CIMB Research said BFood’s core net earnings for the nine month ended Jan 31, 2018 of RM15.7mil came in below the house and the market’s expectations, making up 61% of both the full-year forecasts.