Kuala Lumpur, August 28, 2025 — Shares of Berjaya Food Bhd (BJFood) remained largely unchanged today at RM0.290, as investors held their breath amid a narrowing yet still significant loss—impacted heavily by ongoing fallout from Starbucks Malaysia’s underperformance. Despite a modest improvement in the latest quarter, legacy challenges persist.
According to analysts at CIMB Securities, BJFood posted a core net loss of RM24.0 million for the fourth quarter of fiscal 2025, a marked reduction from prior quarters. Still, full-year core net losses totaled RM125.0 million, slightly better than consensus and prior estimates. The modest recovery was attributed to a combination of Ramadan-related demand recovery, easing pressure from continued boycott sentiment, and a string of 19 underperforming store closures, which helped lower operating expenses by 19.2% and improved EBITDA margins.
Despite this, the company’s revenue fell 11.2% year-on-year to RM115.9 million in the quarter, dragged down by weak consumer sentiment and operational downsizing. While revenue edged up 2.0% quarter-on-quarter, broader challenges remain. Looking forward, CIMB highlights regulatory headwinds such as the expanded 8% Sales and Service Tax on leasing services (effective July 2025), potentially reducing BJFood’s annual earnings by RM4–5 million. Analysts maintain a ‘Reduce’ rating with a target price of RM0.20, citing persistent uncertainty despite operational strides.
Underlying these operational pressures is BJFood’s core business as the operator of Starbucks Malaysia and Brunei. In FY2025, the group endured its worst financial performance since its 2011 listing, posting a record net loss of about RM292 million. That stark figure reflected a precipitous 36% decline in revenue to RM477 million, largely stemming from impairment charges of nearly RM150 million tied to Starbucks outlets. The root cause: a widespread consumer boycott fuelled by geopolitical tensions linked to the Middle East conflict.
These sweeping impairments on property, plant and equipment (PPE), and right-of-use (ROU) assets lay bare the depth of the damage. BjFood operates a vast network of Starbucks outlets—numbering in the hundreds—alongside other brands like Kenny Rogers Roasters and Paris Baguette. Despite the losses, the company emphasized its commitment to stabilizing operations, rebuilding customer engagement, and diversifying income through international expansion.
Meanwhile, investor sentiment, although mildly improved, remains cautious. BJFood’s stock is down over 15% year-to-date, reflecting continuing investor wariness over its ability to fully recover from the Starbucks-induced setback. Strategic rationalization and market diversification remain critical to its return to profitability.
