The Malaysian economy has faced several challenges in recent years, impacting businesses across the board. One example is the parent company of Starbucks Malaysia, which has been grappling with a financial downturn.
In their statement, Berjaya Food revealed that they made RM130.57 million in revenue for the quarter ending June 30, 2024, which is a big drop from the RM271.75 million they earned in the same quarter last year.
The drop in revenue is mainly because of the Middle East conflict
Berjaya Food also reported a pre-tax loss of RM42.69 million this quarter, compared to a pre-tax profit of RM29.04 million last year. The drop in revenue and losses is mainly due to the conflict in the Middle East.
They also reported a revenue of RM730.30 million and a pre-tax loss of RM87.34 million, down from last year’s revenue of RM1.12 billion and a pre-tax profit of RM148.73 million.
“The drop in revenue and pre-tax loss were mostly because of the reasons we mentioned earlier and a one-off loss from selling our whole stake in Jollibean Foods Pte Ltd. Without these special investment costs, the pre-tax loss would have been RM76.84 million, compared to a pre-tax profit of RM148.73 million last year.”
A massive drop from RM1.1 billion to RM730.3 million
A report shows that Berjaya Food went from making a net profit of RM103.4 million to a net loss of RM91.5 million by the fiscal year ending June 30, 2024.
The company’s revenue took a big hit, dropping 34.56% from RM1.1 billion last year to RM730.3 million in FY24.
However, in light of this, the directors of Berjaya Food acknowledge that the market is tough and there are a lot of external challenges affecting their performance.
Even with these hurdles, they’re remaining hopeful that things will gradually get better over the next financial year.
“Recovery might be slow because of ongoing uncertainties, but we believe that making the right changes and improving how we operate will eventually strengthen our position and lead to better financial results.”
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Also read: Starbucks Operator, Berjaya Food, Suffers Nearly RM30 MILLION Loss as Boycott Movements Continue
