BFood stays focused on growth despite Starbucks challenges


PETALING JAYA: Berjaya Food Bhd (BFood) will remain committed to growth and diversification by expanding its brand portfolio and leveraging opportunities locally and internationally.

This, the company said in a filing with Bursa Malaysia, will be despite the fact that its Starbucks brand is facing challenges.

“The strategic initiatives and plans for Starbucks are expected to enhance performance and drive positive results.

“With these ongoing efforts to strengthen current business and the group’s strategic direction, it is well-positioned for further progress and stronger financial results.”

For the second quarter ended Dec 31, 2024 (2Q24), BFood reported a lower net loss of RM35.33mil compared with a net loss of RM42.58mil in the previous corresponding period, while revenue in 2Q24 dropped to RM123.10mil from RM182.55mil a year earlier.

BFood said the lower revenue and higher loss from operations in the quarter under review were mainly attributed to the prolonged impact of the ongoing sentiment related to the Middle East conflict.

“The pre-tax loss in the corresponding quarter of the previous year included a one-off loss of about RM10.5mil from disposal of a former subsidiary.”

For the six-month period ended Dec 31, 2024, BFood’s net loss ballooned to RM69.01mil from a net loss of RM23.55mil in the previous corresponding period, while revenue plunged to RM247.3mil from RM461.09mil a year earlier.

BFood is primarily engaged in developing and operating the “Starbucks Coffee" brand in Malaysia and Brunei, developing and operating the "Kenny Rogers Roasters" chain in Malaysia, producing, packaging and dealing with baked goods under the "Paris Baguette" brand in the Philippines.

“The key factors that affect the performance of the group's businesses include mainly the festive seasons, tourism, eating out culture, raw material costs, staff costs and consumer perception,” said BFood.

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