KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
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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