The ongoing boycott movements have no doubt brought a major loss to many organisations, and Starbucks is among the worst-hit brands. Starbucks operator, Berjaya Food Bhd also suffers a huge loss and in a recent statement, BFood revealed how much of a loss they are facing.
As of March 31, 2024, BFood suffered a major loss of RM29.76 MILLION. Last year, the company earned a profit of RM15.94 MILLION.
“Starbucks’ income dropped by almost half to RM138.65 million after facing a continuous boycott campaign following the conflict in West Asia,” BFood said.
According to the statement, as of March 31, 2024, they continued to record a net profit of RM53.31 million from last year’s net profit of RM86.13 million. BFood also reported a revenue of RM599.74 million and a loss before excise of RM44.65 million against revenue totaling RM844.22 million.
The decrease in income and loss before excise was also due to a one-off loss rather than the disposal of the group entity’s equity interest in the Jollibean Foods Pte Ltd.
Looking at the losses and revenue thus far, the board of directors does not recommend any dividend for the current quarter of the year. They believe that business will improve gradually for the remainder of the quarter ending June 30, 2024.
Earlier, the founder of the Berjaya Food Corporation Berhad, Tan Sri Vincent Tan reminded Malaysians to stop boycotting Starbucks Malaysia. To him, the boycott movement is pointless brings harm to the affected employees.
Tan Sri Vincent Tan also assured Malaysian consumers that Starbucks Malaysia is not owned by the American coffee chain and it’s just a franchise. It is owned by Berjaya Food, a Malaysian company.
Malaysian consumers, including those who are still boycotting, what do you think of this?
Also read: “Long queue all the time” – Newlyweds in Klang Spend RM14K on Starbucks Truck for Their Wedding
