Revaluation boosts QSR group

Fast-food chain operator QSR Brands Bhd’s net assets per share and fourth quarter earnings received a boost from a revaluation of its properties.

QSR said the revaluation exercise had resulted in an increase in the group’s net assets per share by 29 sen as it booked a net surplus of RM6.7 million from the exercise. QSR’s net assets per share as at end-December 2010 stood at RM2.93 compared with RM2.40 as at Dec 31 2009.

For the fourth quarter ended Dec 31, 2010, QSR registered a net profit of RM35.3 million, up 35% year-on-year (y-o-y) from RM26.22 million while revenue grew 10% to RM831.4 million.

For the full year, QSR posted a net profit of RM110.21 million, a 21% y-o-y increase from RM90.92 million previously. Revenue rose 10% to RM3.04 billion.QSR also benefited from a better showing from its 50.64%-owned KFC Holdings (M) Bhd (KFCH).

KFCH’s net profit for 4QFY10 jumped 39% to RM48.7 million from the previous corresponding quarter thanks to its network expansion. Revenue for 4QFY10 rose to RM683.92 million from RM624.23 million previously. KFCH also gained a net surplus of RM6.7 million from the revaluation of its properties. This added 11 sen to its net assets per share, which stood at RM1.25 as at end-December 2010.

QSR added that the revaluation of all its properties was carried out as per its accounting policy to revalue all its land and buildings every five years or at shorter intervals whenever the fair value of the revalued assets was expected to differ materially from their carrying value. The revaluation was carried out by First Pacific Valuers Property Consultants Sdn Bhd. The properties were last revalued on Aug 24, 2005.

The recent revaluation of the QSR group’s properties may raise speculation that the ultimate holding company, Johor Corp, could be making preparations to divest assets to pare down its debt.

For the quarter, QSR and KFCH declared their second interim dividend of 4.5 sen and 5.5 sen, respectively.

QSR closed at RM5.55, gaining one sen while KFCH surged nine sen to end trading at RM3.85. -  by Joy Lee, theedgemalaysia.com