Berjaya Food Bhd (BFood), the parent company of Starbucks Malaysia, announced a net loss of RM29.8 million for the third quarter ending March 31, 2024 (3Q24). Despite the loss, the company expects its performance to improve in the coming months gradually.
Sharp decline as compared to the same quarter last year
For the quarter ending March 31, 2024, BFood recorded a revenue of RM138.65 million and a pre-tax loss of RM33.16 million.
This is a sharp decline compared to the same quarter last year, where the company reported a revenue of RM265.85 million and a pre-tax profit of RM25.39 million.
In a report submitted to Bursa Malaysia, the company said that the significant drop in revenue and the resulting pre-tax loss were mainly due to the negative impact of the ongoing conflict in the Middle East on consumer sentiment.
Read also: Starbucks Malaysia’s Parent Company Suffers RM42 Million Loss Amid Boycott Calls
Revenue decreased QoQ
When comparing the current quarter to the preceding quarter, BFood’s revenue decreased from RM182.55 million to RM138.65 million, and the pre-tax loss improved slightly from RM39.81 million to RM33.16 million.
“The decline in revenue was partly offset by cost-saving measures implemented by the company, which helped reduce the pre-tax loss，” it wrote.
Optimistic about the future
However, the directors of BFood remain optimistic about the future and believe that the operating performance of the Group’s businesses will gradually improve over the next remaining quarter of the financial year ending June 30, 2024.
They are focusing on strategic initiatives to enhance operational efficiency and drive growth in the coming quarters.
Besides Starbucks in Malaysia and Brunei, the group also engaged in developing and operating the “Kenny Rogers Roasters” (“KRR”) chain in Malaysia and producing, packaging, and dealing with baked goods under the “Paris Baguette” brand in the Philippines.
BFood’s management remains committed to navigating the challenging business environment and is confident in the company’s ability to recover and improve its financial performance.
