The Bank of Russia unexpectedly maintained its key interest rate at a record-high 21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to 8.9% in November, well above the central bank’s 4% target , with inflation expectations reaching 13.9% in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s 200-basis point hike as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...
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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