Berjaya Food slips deeper into red, records RM291.9 million loss in FY25
The decline was driven by weaker revenue, store closures and impairments on underperforming outlets, as consumer boycotts weighed heavily on its business.
NURSYAHMINA ZAINAL
SHAH ALAM - Berjaya Food Bhd (BFood) suffered its largest-ever financial loss in history, with a net loss of RM291.9 million for the year ended June 30, 2025 (FY25), which is over three times the RM90.9 million recorded in FY24.
The decline was driven by weaker revenue, store closures and impairments on underperforming outlets, as consumer boycotts weighed heavily on its business.
For FY25, BFood’s revenue fell 36.5 per cent to RM476.8 million from RM750.7 million in FY24.
Following that, the company posted a net loss of RM185.8 million against RM38.2 million a year earlier in the fourth quarter, as revenue slipped 11.2 per cent to RM115.9 million due to fewer stores in operation.
BFood, which operates Starbucks Malaysia, Kenny Rogers Roasters, Paris Baguette, Joybean and KELAVA, said it remains committed to long-term growth despite the sharp downturn.
Based on the company’s filing with Bursa Malaysia, their strategy focused on expanding their digital and social presence, complemented by vibrant physical store experiences that deepen consumer connections.
“We will continue to strengthen the core business, build resilience and deliver sustainable growth, enhance brand equity and improve financial performance while driving international expansion to unlock greater shareholder value,” it wrote.
The steep decline coincides with an ongoing consumer boycott of Starbucks Malaysia due to the Israel's occupation of Palestinian territory, which has weighed heavily on sales.
Berjaya Corp Bhd founder and advisor Tan Sri Vincent Tan Chee Yioun has previously defended the brand, stressing that the boycott is misdirected.
He had said that Starbucks Malaysia was just a franchise which was not owned by Americans, so it was an unnecessary boycott.
He had also reaffirmed that Starbucks America had no shares in Starbucks Malaysia.
Despite these assurances, BFood’s financial results reflect the severe strain of ongoing consumer sentiment, impairments on non-performing stores, and reduced foot traffic.
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