KUALA LUMPUR: Berjaya Food
Holdings Bhd’s restoration momentum is predicted to speed up with the reopening of the nation’s borders on April 1.
Hong Leong Investment Bank (HLIB) analysis famous that the F&B group had already skilled sturdy gross sales enchancment as at 2QFY22, however opines that the border reopening “would function an additional catalyst to drive higher gross sales”.
Following a gathering with Berjaya Food’s administration, the analysis agency stated similar retailer gross sales development (SSSG) for Starbucks Malaysia, Kenny Rogers Roasters (KRR) and Starbucks Brunei have been all up 51%, 61% and 12% year-on-year (y-o-y) respectively as at 2QFY22.
In addition, the group has taken efforts to ramp up its advertising and marketing and promotions for seasonal drinks and merchandises, which command greater margins.
“Note that promotional drinks contribute greater than 10% of gross sales in 2QFY22.
“Additionally, the rise in merchandises (cups, tumblers, tote baggage, water bottles) in Starbuck shops additionally helped to draw foot site visitors,” stated HLIB.
Meanwhile, Berjaya Food has additionally launched a brand new division of retail hospitality to be the purpose of contact for patrons to acquire extra info on Starbucks choices.
According to HLIB, this can additional enhance group’s margin growth, on the again of a 2.2ppt y-o-y Ebitda growth in 2QFY22 ensuing from a better transaction depend.
On new choices, HLIB famous that Berjaya Food has expanded its menu choice in KRR shops with fish fillet and meatball choices for customers.
The group has additionally integrated a brand new subsidiary known as Berjaya Kelava which is principally concerned in manufacturing, buying and selling and producing vegan ice cream known as Kelava.
HLIB maintained its “purchase” name and goal worth of RM3.80 on Berjaya Food.
“We are optimistic on Starbucks which continues to develop through new outlet openings and better gross sales from lively promotions and continuous progressive merchandise.
“Furthermore, a leaner idea KRR retailer would allow the group to keep up its profitability,” it stated.
