Starbucks Malaysia operator posts 52% drop in revenue in Q4

The group attributed the loss to sentiment in relation to the conflict in the Middle East.

Malaysian restaurant operator Berjaya Food Berhad posted a revenue of $30.19m (RM130.57m) for the fourth quarter ending 30 June 2024, a 52% drop from $62.83m (RM271.75m) from the previous year’s corresponding quarter.

According to its bourse filling, the significantly lower revenue and pre-tax loss incurred in the current quarter under review were primarily attributed to the current sentiment in relation to the conflict in the Middle East.

The group reported a revenue of $168.86m (RM730.30m) and pre-tax loss of $20.19m (RM87.34m). These figures represent a decrease compared to the revenue and pre-tax profit of $260m (RM1.12b) and $34.39m (RM148.73m) recorded in the same period of the previous year. Contributing to this was the one-off loss arising from the disposal of the group's entire equity interest in Jollibean Foods Pte Ltd.

Excluding the exceptional investment-related expenses, the pre-tax loss would have been $17.77m as compared to a pre-tax profit of $34.39m in the previous financial year.

“The Directors recognise the challenging market conditions and external pressures affecting the Group's business performance. Despite these difficulties, we remain cautiously optimistic expecting a gradual improvement in operational performance over the next financial year. While recovery may be slow due to ongoing current uncertainties, the Directors believe that strategic adjustments and operational refinements will, in time, strengthen the Group's position and lead to better financial results,” the group said.

Berjaya Food operates brands like Starbucks and Kenny Rogers in Malaysia. The group is also a franchisee of South Korean bakery and cafe chain Paris Baguette which the group launched in 2023 in Malaysia and in the Philippines this 2024.