Berjaya Corp net loss widens in Q2FY24 on Starbucks boycott

KUALA LUMPUR: Berjaya Corp Bhd's net loss widened to RM116.3 million in the second quarter ended Dec 31 of financial year 2024 from the RM24.81 million a year ago, mainly due to  the boycott of Starbucks' cafes arising from the Middle East conflict.

This was on 4.4 percent lower revenue of RM2.23 billion in Q2 2024 compared with revenue of RM2.34 billion in the previous year corresponding quarter.

The lower revenue in the current quarter was mainly due to lower contributions from the food retail, property and services segments.

In its filing with Bursa Malaysia Secrities Bhd, Berjaya Corp said the lower revenue within the retail segment was mainly due to the drop in revenue in the food retail business.

It said the non-food retail business reported an increase in revenue in the current quarter under review.

"Despite a revenue decline in its reporting currency, Sterling Pound, H.R. Owen Plc (HR Owen) reported an increase in revenue due to the favourable foreign exchange impact when converted into ringgit," it said.

Meanwhile, the company said its property segment reported lower revenue in the current quarter, mainly due to lower sales of overseas residence units.

"The services segment also reported a lower revenue in the current quarter due to the lower revenue reported by the gaming business, which is operated by STM Lottery Sdn Bhd (STM Lottery)," it said.

However, Berjaya Corp said the company's hospitality segment reported higher revenue due to the higher overall average room rates and the full three months' revenue from the Iceland Parliament Hotel, which commenced its operations in December 2022.

For six months period, Berjaya Corp recorded a higher net loss of RM100.55 million compared to RM41.22 million last year, while revenue rose to RM4.8 billion from RM4.58 billion.

On its prospects, Berjaya Corp said the performance of the business segments of the company is expected to improve on the back of moderate consumer spending, a rebound of tourism activities and better-than-expected labour market conditions. It said the company will monitor the prevailing global and local political development in the countries where the Group has business operations.

"Taking into account of the aforesaid and barring any unforeseen circumstances, Berjaya Corp is cautiously optimistic that the performance of the business operations of the company for the remaining quarters of the financial year ending June 30, 2024 (FY24) to be satisfactory," it added.

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