BFood posts RM33.16m Q3 loss as Starbucks boycott continues

 

Berjaya Food Berhad, which operates several food and beverage brands including Starbucks, has reported a pre-tax loss of RM33.16 million for the third financial quarter ending March 31, 2024.

This is compared to the RM25.39 million profit it made during the corresponding period last year.

Its revenue fell by nearly half from RM265.85 million to RM138.65 million during this period.

“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,” it said in a statement today.

Meanwhile, for the nine-month period up to March 31, the company reported a pre-tax loss of RM44.65 million, compared to a profit of RM127.48 million in the previous year.

Its revenue fell from RM844.22 million to RM599.74 million.

The company attributed the decline to the sentiments surrounding the “aforementioned reason”, as well as a one-off loss from selling off its stake in Jollibean Foods Pte Ltd.

“Excluding the exceptional investment-related expenses, the pre-tax loss would have been RM34.15 million in the current period under review,” it said.

“The board does not recommend any dividend for the current quarter under review,” it added.

It said the directors believe the company’s business will gradually improve over the remaining quarter of the financial year ending June 30.

Target of boycotts worldwide

Starbucks franchises worldwide have been targeted for boycotts by supporters of the Palestinian cause, after it took action against a worker’s union in the United States for posting its support for Palestine on social media.

The brand had objected to the use of its logo on the union’s messages supporting the Palestinians.

Starbucks Malaysia said it stands for humanity and has no political agenda but its shops and employees have been targeted for violence due to misinformation about the nature of its business.

Berjaya Group founder Vincent Tan had appealed to the public to end the boycott against Starbucks, pointing out that 85 percent of Starbucks Malaysia’s employees are Muslims. - Mkini