Expect significant new tariffs on Chinese imports and moderate levies on goods from other nations , as President-elect Donald Trump rolls out his protectionist agenda. However, with his preference for chaotic policymaking and sudden shifts , there’s uncertainty on how soon these import taxes will actually hit. Dubbed “ Tariff Man ,” Trump aims to use tariffs both strategically and tactically . He’s mentioned taxing all Chinese goods up to 60% and potentially setting 10%-20% tariffs on imports globally , but details on these plans remain vague . Key players within Trump’s team are divided: Robert Lighthizer , a staunch tariff advocate, sees permanent duties as crucial to balance US trade , while others, like billionaires John Paulson and Scott Bessent , view tariffs as temporary leverage. Trump’s previous administration had mixed feelings, especially on national security-related trade limits , which he sometimes dismissed, favoring an “open for business” approach. High-profile busin
Berjaya Food Bhd (BFood) has reported a net loss of RM38.2 million for the fourth quarter ended June 30, 2024 (4QFY2024), marking a significant downturn from the net profit of RM17.28 million recorded in the same period last year. This shift to losses is attributed to the negative sentiment stemming from the ongoing conflict in the Middle East, which has affected consumer behavior and overall market conditions.
Key Points:
Quarterly Performance: BFood's loss per share for 4QFY2024 was 2.16 sen, compared to an earnings per share of 0.99 sen in 4QFY2023. The company did not declare any dividend for this period. Additionally, revenue dropped sharply by more than half, from RM271.75 million a year ago to RM130.57 million.
Full-Year Results: For the full fiscal year 2024, BFood posted a net loss of RM91.52 million, a stark contrast to the net profit of RM103.4 million in FY2023. The losses were exacerbated by weaker consumer sentiment and a one-off loss related to the disposal of its entire equity interest in Jollibean Foods Pte Ltd (JFPL). Without the exceptional investment-related expenses, the pre-tax loss would have been RM76.84 million, compared to a pre-tax profit of RM148.73 million in the previous year. Revenue for FY2024 also fell to RM730.3 million, down from RM1.12 billion in FY2023.
Operational Focus: BFood operates primarily in the food and beverage sector, with key brands including Starbucks Coffee in Malaysia and Brunei, Kenny Rogers Roasters (KRR) in Malaysia, and Paris Baguette in the Philippines. The decline in performance highlights the impact of geopolitical tensions and changing consumer behavior on the company's operations.
Market Reaction: Shares of BFood fell by 1.5 sen, or 2.9%, to 50.5 sen at the close of trading on Tuesday, giving the company a market valuation of RM983.6 million. The stock has declined by 15.8% year-to-date, reflecting investor concerns over the company’s financial performance amid challenging market conditions.
In summary, BFood’s financial performance has been significantly impacted by the ongoing Middle East conflict, leading to reduced consumer spending and overall negative sentiment. The company faces continued challenges as it navigates these difficult market conditions, with its key brands and operations under pressure.
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