Malaysia-based Berjaya Food has reported a bigger loss and lower sales for both the fourth quarter and the fiscal year.
Berjaya operates Starbucks Coffee in Malaysia and Brunei, as well as Kenny Rogers Roasters in Malaysia. It also operates the Paris Baguette brand in Malaysia in a joint venture with Paris Baguette Singapore and produces baked goods for stores across Southeast Asia.
For the quarter ended June 30, the group’s revenue declined 11 per cent year-over-year to RM115.8 million (US$27.4 million), primarily due to a reduction in the number of stores.
Management noted that sales were slightly higher compared to the third quarter, primarily attributable to improved sales performance at Starbucks Malaysia.
Loss before tax increased from RM42.6 million to RM183.7 million, primarily due to the impairment of property, plant, and equipment (PPE) and right-of-use (ROU) assets of non-performing stores.
For the full year, revenue dropped 36 per cent to RM476.7 million, attributed to the ongoing sentiment related to the Middle East conflict, which affected market dynamics and influenced customers’ spending patterns.
Pre-tax loss widened from RM89 million to RM288.7 million, as management had to make the necessary impairment provision to PPE and ROU assets arising from the downsizing of Starbucks Malaysia’s operations.
