Berjaya Food Bhd (BFood), the operator of Starbucks Malaysia, has sunk deeper into the red, posting a record net loss of RM291.99 million for the financial year ended June 30, 2025 (FY’25), as the boycott against the brand continued to weigh heavily on sales.
Sharper losses as stores downsize
In its latest quarterly report, BFood revealed that for the fourth quarter ended June 30, 2025, the group recorded revenue of RM115.9 million and a pre-tax loss of RM183.79 million, compared to RM130.57 million in revenue and RM42.69 million in pre-tax loss during the same period last year.
The group attributed the lower revenue to a reduced number of Starbucks stores in operation, while the steeper loss was largely due to the impairment of property, plant and equipment (PPE) and right-of-use (ROU) assets from non-performing outlets.
Impact of boycott
For the financial year ended June 30, 2025, BFood posted revenue of RM476.77 million and a pre-tax loss of RM288.75 million, a steep decline from RM750.70 million in revenue and RM89.06 million in pre-tax loss in FY’24.
The company highlighted that the “prolonged impact of the ongoing sentiment related to the Middle East conflict” had severely dampened consumer spending patterns.
The lower revenue was primarily attributed to the prolonged impact of the ongoing sentiment related to the Middle East conflict, which affected market dynamics and influenced customers’ spending patterns,” it said.
This forced management to make significant impairment provisions and downsize Starbucks Malaysia’s operations.
When did the downturn begin?
BFood’s troubles first became evident in late 2023, when the global boycott movement against Starbucks gained momentum following the escalation of the Middle East conflict.
Since then, the company has reported consecutive quarters of declining sales, and by FY’24, it had already begun permanently shutting or suspending underperforming stores to stem losses.
The trend carried into FY’25, with impairments ballooning and losses deepening further.
Diversifying into local & overseas markets
Despite the challenging year, BFood said it is diversifying into local and overseas markets while consolidating its domestic store base to strengthen core operations.
The group pointed to “encouraging signs of recovery” in the Malaysian market, reflecting the effectiveness of its consolidation strategy.
Moving into the next financial year, BFood said it pledged to focus on innovation, digital transformation, and stronger customer engagement, combining digital and social presence with vibrant in-store experiences to rebuild consumer connections.
The company also outlined plans for international expansion, aimed at enhancing brand equity, improving financial performance, and unlocking greater shareholder value.
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