Berjaya Food Berhad, the parent company of Starbucks Malaysia, has encountered a challenging financial period, with revenue of RM182.55 million and a net loss of RM42.58 million for the quarter ending December 31, 2023.
Berjaya Food hit hard by boycott calls
This downturn is a significant deviation from its performance during the same period last year, where it reported a revenue of RM295.32 million and a pre-tax profit of RM52.06 million.
According to Berjaya Food’s quarterly report that ended 31 December 2023, the drop in revenue was primarily due to a boycott driven by conflicts in the Middle East.
“The drop in revenue was mainly due to the boycott in relation to the conflict in the Middle East.
The pre-tax loss incurred in the current quarter under review was mainly due to the lower sales registered and a one-off loss arising from the disposal of the Group’s entire equity interests in Jollibean Foods Pte Ltd,” it wrote in the report.
Group directors remain optimistic about the group’s operating performance
When excluding exceptional investment-related expenses, the pre-tax loss would have been RM29.31 million, showcasing the extent of the financial impact beyond the boycott.
For the six months ending December 31, 2023, Berjaya Food reported a revenue of RM461.09 million and a pre-tax loss of RM11.49 million, a stark contrast to the previous year’s figures of RM578.37 million in revenue and RM102.09 million in pre-tax-profit.
Despite the current financial hurdles, Berjaya Food’s board of directors is optimistic about the future.
They believe the group’s operating performance will improve in the remaining quarters of the financial year ending June 30, 2024.
The Directors are of the view that the operating performance of the Group will show improvement in the remaining quarters of the financial year ending 30 June 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.
You may view the full report here.
