Berjaya Food has exited the joint venture with Paris Baguette, ending a partnership that introduced the South Korean bakery chain to Malaysia in 2023.
Berjaya Food sold its 50 per cent stake in Berjaya Paris Baguette (BPB) to Paris Baguette Singapore for a nominal RM1 (US 24 cents). The transaction, completed on June 30, covers 20 million ordinary shares, with Berjaya Food also settling RM3.91 million (about $960,920) in outstanding liabilities before exiting the venture.
According to the filing, the Malaysian operation has remained loss-making since launch. As of December 31, BPB reported an unaudited loss after tax of RM67.09 million ($16.49 million) and net liabilities of RM33.41 million ($8.2 million). Berjaya Food’s RM20 million ($4.9 million) investment in the venture had also been fully impaired.
“The disposal forms part of the divestment plan of BFood to exit from the ‘Paris Baguette’ chain of bakery and retail store business in Malaysia, which has been incurring losses since the launch of the said brand name in Malaysia,” the company said in a Bursa Malaysia filing.
It added that the transaction would eliminate the group’s exposure to BPB’s ongoing losses, enabling it to redirect resources and management focus towards its core businesses and future growth opportunities.
Paris Baguette first entered Malaysia in 2023 and currently operates 16 locations nationwide.
The divestment comes as Berjaya Food faces broader earnings pressure. The group reported its fifth consecutive quarterly loss last year, largely due to weaker performance at its Starbucks Malaysia business.
