MCO affects Berjaya Food bottom line

Published on 22 Aug 2020. | Source: thestar.com.my

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KUALA LUMPUR: Berjaya Food Bhd posted net losses of RM30.16mil on revenue of RM111.56mil in the fourth quarter ended June 30,2020 as it was adversely affected by the outbreak of Covid-19 pandemic and movement curbs.

In a statement to Bursa Malaysia yesterday, it said the movement control order (MCO), which came into effect on March 18, followed by the conditional MCO from May 12 to June 9 covered substantially the current reporting period.

“The group experienced a significant reduction in sales and recorded negative same-store-sales growth during this period, as the group was restricted from operating at its full capacity.

“Even though the group’s sales were recovering at a fast pace when Malaysia entered into the recovery MCO phase which started on June 10, the group still recorded a much lower sales in the current quarter under review.

Berjaya Food said the significant drop in sales caused a significant reduction in gross profit contribution, which was insufficient to offset the fixed costs (such as depreciation and rental expenses) in some outlets.

It also recognised an impairment loss on goodwill and property, plant and equipment of about RM2.35mil and RM1.15mil respectively as the recoverable amounts are lower than their carrying amounts.

Loss per share was 8.53 sen.

For the financial year ended June 30,2020, the group’s revenue and pre-tax loss were RM634.72mil and RM7.60mil respectively. Its net losses were RM18.92mil, badly impacted by the fourth quarter.

For the 14-month period ended June 30,2019, the group reported a revenue of RM788.98mil and pre-tax profit of RM46.56mil respectively.

“The Covid-19 pandemic has resulted in unprecedented preventive lockdown measures of varying degrees, and these have adversely impacted the group’s operating results.

“Nevertheless, the group is cautiously optimistic that the operating results of the group will be satisfactory in the ensuing financial year ending June 30,2021 with the gradual relaxation of the lockdown measures and recovery of the economy, ” it said.

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