Berjaya Food Bhd has now recorded high losses for the fourth quarter in a row due to the anti-Israel boycott campaign which had a major impact on the company's financial performance.
After the first quarter ended on 30 September 2024, the company continued to record a net loss of RM 33.68 million, compared to a profit of RM 19.03 million a year ago.
Income also declined by more than half to RM 124.19 million from RM 278.53 million.
The ongoing boycott campaign by Malaysians has now forced Berjaya Food to temporarily close nearly 50 Starbucks outlets, after 25 in the previous quarter, due to reduced sales.
This put pressure on earnings before interest, tax, depreciation and amortization EBITDA margins fell to 8.1%, according to CIMB Securities.
Despite facing a bitter and challenging situation, Berjaya Food remains optimistic by expecting a slow improvement in the coming quarter, especially in the run-up to the festive season which is about to emerge at the end of this year.
However, with the increasingly endless boycott campaign, Berjaya Food is now forced to find a smart move that will not only return profits, but also ensure that this company does not continue to 'close up shop' and become history.
