Highlights

Good Articles to Share

Author: Tan KW   |   Latest post: Sun, 29 Nov 2020, 6:44 PM

 

5 things I learned from the 2019 Berjaya Food AGM - Shak Chee Hoi

Author:   |    Publish date:


 

Berjaya Food Berhad owns Starbucks stores in Malaysia and Brunei, Kenny Rogers Roasters restaurants in Malaysia, and Jollibean stores in Singapore. It also sells canned and bottled Starbucks coffee and Joybean soy milk beverages for the retail market. In 2019, it owned a total of 407 stores.

I wondered how Berjaya Food was performing as there seems to be a Starbucks store at almost every corner of the Klang Valley. So I attended its most recent AGM to learn more.

Here are five things I learned from the 2019 Berjaya Food AGM:

1. Revenue increased 23.3% year-on-year from RM639.7 million in 2018 to RM789.0 million in 2019. The increase in revenue is due to higher contributions from Starbucks and an additional two months of operations as Berjaya Food changed its financial year end from 30 April to 30 June in order to coincide with its ultimate holding company, Berjaya Corporation Berhad. Starbucks recorded about 3% same-store sales growth in 2019 and opened 32 new stores in 2019. Same-store sales growth remained flat for Kenny Rogers Roasters and Jollibean in 2019. The total number of stores owned by Berjaya Food are as follows:

  Number of stores (2018) Number of stores (2019)
Total 376 407
Starbucks in Malaysia 260 291
Starbucks in Brunei 4 4
Kenny Rogers Roasters in Malaysia 81 80
Jollibean in Singapore 31 32

2. Berjaya Food recorded a net profit excluding other income of RM15.2 million in 2019 compared to a net loss of RM5.2 million the previous year. Net profit mainly improved because of revenue growth. There was also a one-off loss arising from the disposal of an Indonesian subsidiary, PT Boga Lestari Sentosam of about RM12.3 million in 2018. Other receivables amounting to RM2.3 million was also impaired in 2018 as a result of this disposal. The impairment resulted from the outstanding balance owed by PT Boga Lestari Sentosa to Berjaya Food.

3. Kenny Rogers Roasters continued to record losses in 2019 because of additional expenses incurred from the closure of loss-making stores. In 2019, Berjaya Food opened eight new stores but closed nine. The operations are expected to turn profitable by Q3 2020. Ten new openings and three closures are planned for 2020.

4. Jollibean’s loss before tax tripled from S$244,000 in 2018 to S$750,000 in 2019 because Berjaya Food spent more money on store renovations and rebranding activities. The management estimated that the business will turn around in 2020. The brand is currently franchised in Singapore and the Philippines. Further franchising opportunities are being explored in Thailand and Vietnam.

5. Minority Shareholder Watch Group (MSWG) highlighted that total directors’ remuneration increased by 45.5% year-on-year to RM4.3 million in 2019. The board explained that the increase was mainly due to appointments of new directors at the operating level as well as the additional two months of operations in 2019.

 

https://fifthperson.com/2019-berjaya-food-agm/

Share this
Labels: BJFOOD

Related Stocks

Chart Stock Name Last Change Volume 
BJFOOD 1.70 +0.01 (0.59%) 265,900 

  Be the first to like this.
 


APPS
I3 Messenger
Individual or Group chat with anyone on I3investor
MQ Trader
Stock Screener using Technical and Fundamental criteria
MQ Affiliate
Join the MQ Affiliate Program today to earn rewards
 
 

529  557  546  538 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 KANGER 0.185+0.005 
 AT 0.200.00 
 BINTAI 0.795+0.10 
 KGROUP 0.060.00 
 MTRONIC 0.115+0.005 
 ASIABIO-OR 0.015+0.005 
 IRIS 0.36+0.005 
 VIVOCOM 1.01+0.205 
 FINTEC 0.105+0.01 
 SOLUTN 1.27+0.15 

FEATURED POSTS

1. The Equity Market Index Benchmark in Malaysia CMS
2. Trading Scenarios of Derivatives Bursa Derivatives Education Series
3. Derivatives 101 Bursa Derivatives Education Series
4. Why Trade FKLI? Bursa Derivatives Education Series
5. MQ Trader - Introduction to MQ Trader Affiliate Program MQ Trader Announcement!
PARTNERS & BROKERS