BFood sales rise despite consumer caution

Malaysian food outlet group Berjaya Food (BFood) has had an 8 per cent rise in revenue to RM139.05 million (US$34.03 million) for its fourth quarter, ended April 30.

BFood, which runs Jollibean, Kenny Rogers Roasters (KRR) and Starbucks outlets, says the increase is mainly because of higher sales in existing cafes along with income from new cafes.

The group’s pre-tax profit dropped to RM7.67 million from RM10.06 million in the same quarter last year, mainly because of a lower contribution from KKR outlets as Malaysian consumers have been more cautious about spending after the implementation of the GST tax, plus the steep depreciation of the ringgit, affecting the profit margin of Berjaya Starbucks Coffee Company (BStarbucks).

As well as this, during the quarter about RM600,000 was paid to Royal Malaysian Customs Department by BStarbucks for additional import duty and sales tax on purchases from its principal over the past few years.

For the financial year, the group’s revenue grew 47 per cent to RM554.15 million from RM376.78 million the previous year. The higher revenue was mainly because of the full effect of consolidating BStarbucks, which became a subsidiary the previous financial year.

With the weak consumer sentiment brought on by the introduction of the GST and various other factors, BFood will be working in a challenging environment in the next financial year, says the group. Nevertheless, it expects BStarbucks to maintain its revenue growth momentum.