PETALING JAYA: Analysts expect Berjaya Food Bhd
’s losses to narrow in the second quarter of financial year 2026 (2Q26) after posting a net loss of RM14.8mil in 1Q26 ended Sept 30.
CIMB Research projected Berjaya Food’s losses to narrow quarter-on-quarter (q-o-q) in 2Q26 supported by seasonal demand during the year-end festive period and a temporary uplift in consumer sentiment following the government’s cash aid disbursement at end-August, which could spur short-term discretionary spending.
However, the research house expected losses to widen in the second half of financial year 2026, reflecting intense competition from new market entrants, which may pressure revenue growth and increase operating expenses should Berjaya Food step up marketing and promotional activities to defend its market position.
The research house said it is maintaining its earnings estimate and “reduce” call on Berjaya Food with an unchanged target price of RM0.20.
Hong Leong Investment Bank (HLIB) Research, among others, said it expected the Starbucks brand overhang from geopolitical tensions to continue suppressing demand in the near term.
This will delay its return to pre-boycott performance levels.
It also viewed the rising competition from fast-expanding local and China-based coffee chains to exert further pressure on the market, making it increasingly difficult for Starbucks to reclaim lost market share.
HLIB Research is maintaining its “sell” stance on Berjaya Food with a target price of RM0.19 (from RM0.15), as it believed sustained earnings recovery would take time to materialise.
Structural demand headwinds from ongoing boycott sentiment remained a meaningful drag, limiting near-term upside despite management’s proactive restructuring efforts, it added. Berjaya Food operates Starbucks, Kenny Rogers and Paris Baguette in Malaysia.
It reported a net loss of RM14.8mil in 1Q26, narrowing from a RM33.7mil loss in the corresponding period a year ago.
Revenue for the quarter increased 3.3% to RM128.25mil year-on-year.
In a filing with Bursa Malaysia, the company said the slight improvement in revenue was mainly supported by contributions from its new overseas operations.
