Starbucks boycott pushes Berjaya Food to post RM42.6mil net loss in Q2

KUALA LUMPUR: Berjaya Food Bhd (BFood) posted a net loss of RM42.6 million in the second quarter ended Dec 31, 2023, against a net profit of RM35.5 million a year ago, as the boycott on Starbucks continued.

Revenue declined by 38 per cent to RM182.5 million compared with RM295.3 million garnered last year.

For the first six months period ended Dec 31 2023, BFood posted a net loss of RM23.5 million against a net profit of RM70.2 million for the same period in financial year 2023.

Revenue was also 20.3 per cent lower at RM461.1 million from RM578.4 million previously.

Despite the unfavourable performance in this quarter, BFood is optimistic about its operating performance, expecting improvement and regained momentum in the remaining quarters of the financial year ending June 30, 2024.

"The board of directors believes that the operating performance results will rebound and regain momentum, considering the current situation as short-term and things are anticipated to progress positively moving forward," it said in a filing with Bursa Malaysia.

BFood is primarily engaged in developing and operating the "Starbucks Coffee" brand in Malaysia and Brunei, developing and operating the "Kenny Rogers Roasters" chain in Malaysia.

It also involved in producing, packaging and dealing with baked goods under the "Paris Baguette" brand in the Philippines.

"The key factors that affect the performance of the group's businesses include mainly the festive seasons, tourism, eating out culture, raw material costs, staff costs and consumer perception, it added.

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