PETALING JAYA: Berjaya Food Bhd’s second quarter net profit ended Oct 31 was 21.0% higher due to higher profit contributions from Starbucks Coffee operations in tandem with the higher revenue achieved.
In addition, the group had ceased consolidation of the losses from its Kenny Rogers Roasters (KRR) operations in Indonesia following its disposal in the previous financial year.
The group made a net profit of RM7 million for the quarter under review, compared with RM5.8 million for the corresponding quarter in the preceding year.
This was on 35.9% higher revenue of RM166.6 million, compared with RM160.8 million for the corresponding quarter in 2017 mainly due to the same-store-sales growth recorded by Starbucks as well as additional Starbucks cafes operating in Malaysia.
The board has recommended a second interim dividend of one sen per share in respect of the financial year ending April 30, 2019 to be payable on Jan 25, 2019. The entitlement date has been fixed on Jan 9, 2019. Total dividend declared for the financial period ended Oct 31 amounts to two sen per share.
The group is engaged in developing and operating the Starbucks Coffee brand in Malaysia and Brunei, developing and operating the KRR chain in Malaysia as well as Jollibean and two other brands in Singapore.
The key factors that affect the performance of all food and beverage businesses include mainly the festive seasons, tourism, eating out culture, raw material costs, among others.
The board believes that the renewed consumer confidence level, coupled with the group’s expansion plans, will fuel the group’s business growth and should augur well for the group’s operations going forward.
For the cumulative six month period ended Oct 31, the group posted a net profit of RM13.3 million, compared with RM11.2 million for the same period in 2017.
This was on 4.1% higher revenue of RM328 million, compared with RM315.2 million for the same period in 2017.
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PETALING JAYA: The headline Nikkei Malaysia Manufacturing Purchasing Managers' Index (PMI) – a composite single-figure indicator of manufacturing performance – dipped below the 50.0 no-change mark for the first time since July to signal worse business conditions than in the previous month.
The headline index fell to 49.2 in October, from 51.5 in September, indicating a mild rate of contraction in Malaysia's goods-producing sector.
The deterioration in operating conditions was largely driven by a marked reduction in total new sales. Demand eased noticeably in October, with weakness arising from domestic markets and the recently implemented sales & service tax (SST).
However, new business from overseas increased at the sharpest pace in nine months. The US and countries in Southeast Asia were mentioned as destinations for new export orders.
With the overall level of new work declining, production at Malaysian manufacturers was cutback for the first time since June. However, the rate of decrease was only fractional, as outstanding business and new product launches encouraged some output growth in some instances.
Survey data pointed to an alleviation of capacity pressures at Malaysian manufacturing units in October. Incomplete workloads declined at a faster extent than in September, but the rate of depletion was only modest overall.
Despite falling incoming and existing order volumes, employment continued to rise, extending the current period of job creation to five months. Panellists indicated that new projects in the pipeline encouraged them to raise headcounts. However, the rise in staffing levels eased noticeably as some firms looked to reduce expenses.
Detrimental exchange rate movements, rising raw material prices and the SST were all cited as sources of cost pressures in October. Input price inflation quickened to the fastest in almost a year. In line with higher purchasing costs, buying activity declined for the first time since July. Output charges were raised in response, and to the greatest extent in six months, but weak demand restricted the overall rate of increase to only a slight pace.
Despite the negative start to the fourth quarter, firms expect output levels to lift over the coming 12 months. Planned expansion into new markets and stronger sales forecasts supported business confidence.
Commenting on the Malaysian Manufacturing PMI survey data, Joe Hayes, economist at IHS Markit, which conducted the survey, said data are showing the initial impact that the implementation of the SST is having on the real economy.
“At a time when global raw material prices are rising and the domestic currency is weakening, the SST introduction has fuelled a further month of sharp input cost inflation in Malaysia's manufacturing sector.
“Aside from the demand-side impact of the SST, there were reports of general underlying market weakness hampering new business growth, which restricted the extent to which firms were passing through higher cost burdens to clients. Indeed, firms reduced both input buying and new staff hiring in October as part of efforts to curb costs.”
Nonetheless, Hayes said, export sales increased at the fastest pace in nine months, with neighbouring countries in Southeast Asia, supporting international demand for Malaysian goods.
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PETALING JAYA: Syarikat Takaful Malaysia Keluarga Bhd's net profit for the third quarter ended Sept 30, 2018 rose 73% to RM83.96 million from RM48.57 million a year ago mainly attributable to increase in net wakalah fee income.
The group generated revenue of RM648.95 million, 36% higher than RM476.24 million in the corresponding quarter of the preceding year, mainly attributable to higher sales generated by the family and general takaful business.
For the nine months period, its net profit jumped 36% to RM204.35 million from RM150.40 million a year ago mainly attributable to higher net wakalah fee income arising from business growth in the family and general takaful business.
The group recorded revenue of RM1.94 billion, an increase of 19% compared to the same period last year of RM1.62 billion, mainly attributable to higher sales generated by both family takaful and general takaful business.
Takaful Malaysia told Bursa Malaysia in its filing that in 2018 it will remain focused on sustaining its position as the market leader in the family takaful business while expanding its market share in the general takaful business to establish a strong foothold in the industry. It will continue to emphasise on customer reach, operational agility, cost competitiveness and stakeholder confidence to establish the company as the preferred choice for insurance amongst the consumers.
PETALING JAYA: Public Bank Bhd’s net profit slipped 1.5% to RM1.38 billion for the third quarter ended September 30, 2018 compared with RM1.4 billion in the previous corresponding period, due to the absence of a one-off capital gain on investment of RM43 million.
Excluding the one-off gain recorded in the same quarter last year, its net profit would have increased 1.6%, driven by lower loan impairment allowance, higher income from Islamic banking business and higher net interest income.
The bank’s revenue for the quarter under review grew 5.9% to RM5.62 billion from RM5.31 billion.
Its nine-month net profit expanded 5% to RM4.19 billion from RM3.98 billion, while revenue was up 5.8% to RM16.41 billion from RM15.51 billion.
Public Bank’s total gross loans rose by an annualised rate of 4.4% to RM314.5 billion for the first nine months of 2018. Domestic loans also increased 4.4% to RM291.6 billion.
Total customer deposits grew at an annualised rate of 6.5% to RM334.9 billion, with domestic deposits rising 6.3% to RM307.0 billion.
As at end-September 2018, the bank registered gross impaired loans ratio of 0.5% and loan loss coverage of 110.2%. Including the regulatory reserves of RM2.0 billion, the loan loss coverage was at 235.8%.
Its common equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio stood at 12.6%, 13.2% and 15.8%, respectively.
Public Bank’s overseas operations contributed 9.5% of the group’s overall pre-tax profit. Public Financial Holdings Ltd Group in Hong Kong and Cambodian Public Bank Plc remained the largest contributors to overseas operations profit.
Looking ahead, Public Bank founder and chairman Tan Sri Teh Hong Piow said taking cognisance of the challenges in the operating environment, the group will reinforce its prudent and effective balance sheet management to sustain profitability.
“The group’s long term practice of cost efficiency, prudent risk management and agility to capture opportunities will continue to lead the group for sustainable business growth.”
At the noon break, the stock fell 6 sen or 0.2% to RM24.82 on 1.66 million shares done.