As global dynamics continue to shift, businesses worldwide are grappling with increasing pressures, and Berjaya Food Berhad (BFood), the parent company of Starbucks Malaysia, is no exception.
The company has reported a significant financial downturn, highlighting the challenges faced over the past fiscal year.
For the fiscal year ending June 30, 2024 (FY24), BFood reported a net loss of RM91.5 million, a dramatic shift from the RM103.4 million net profit recorded the previous year.
The company’s revenue also saw a sharp decline, falling by 34.56% from RM1.1 billion in the previous year to RM730.3 million in FY24.
According to a press release, BFood posted a revenue of RM130.57 million for the quarter ending June 30, 2024, a sharp decline from the RM271.75 million recorded in the same quarter of the previous year.
This substantial drop in revenue was accompanied by a pre-tax loss of RM42.69 million, a stark contrast to the pre-tax profit of RM29.04 million reported in the corresponding quarter last year.
The company attributed these disappointing figures primarily to the ongoing conflict in the Middle East.
“The significantly lower revenue and pre-tax loss incurred in the current quarter under review were mainly due to the current sentiment in relation to the conflict in the Middle East.” they stated.
For the entire fiscal year, BFood reported a total revenue of RM730.30 million, significantly lower than the RM1.12 billion recorded in the previous year.
The company also incurred a pre-tax loss of RM87.34 million, compared to the pre-tax profit of RM148.73 million in the previous financial year.
The decline in both revenue and profit was attributed not only to the Middle East conflict but also to a one-off loss from the disposal of the Group’s entire equity interest in Jollibean Foods Pte Ltd.
However, BFood clarified that excluding these exceptional investment-related expenses, the pre-tax loss would have been RM76.84 million, still a significant drop from the RM148.73 million profit recorded in the previous year.
In light of these challenges, the Directors of BFood acknowledged the difficult market conditions and external pressures impacting the Group’s performance.
Despite these setbacks, they remain cautiously optimistic about the future.
According to the statement, the Directors anticipate a gradual improvement in operational performance over the next financial year, though they acknowledge that recovery may be slow due to ongoing uncertainties.
They believe that with strategic adjustments and operational refinements, the Group’s position will eventually strengthen, leading to better financial outcomes in the future.
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