Hextar Industries (KLSE:HEXIND) incurred a net loss of 6.4 million in the first quarter, reversing a profit of 2.1 million ringgit a year ago, according to a Monday Malaysian bourse filing.
Shares slid about 2% in Tuesday's late morning trade.
The company attributed the loss to start-up and expansion costs related to its F&B operations.
Revenue, however, rose 7.4% from a year earlier to 235 million ringgit during the period, thanks to expansion in its food and beverage business.
Group Managing Director Benny Ang said the company has expanded to 98 Luckin Coffee outlets in Malaysia and expects its proposed acquisition of a 51% stake in Woodpeckers Group to strengthen its F&B portfolio. Upon completion, Hextar Industries will become the master franchise holder for both Luckin Coffee and Ilaollao in Malaysia.