KUALA LUMPUR (Feb 20): Berjaya Food Bhd (KL:BJFOOD), or BFood, posted a net loss of RM35.33 million for the second quarter ended Dec 31, 2024 (2QFY2025), marking its fifth consecutive loss-making quarter.

The Starbucks coffee chain operator’s net loss was larger at RM42.58 million a year ago.

Quarterly revenue fell by one-third to RM123.1 million against RM182.55 million a year before.

The company’s performance was hit by the prolonged anti-Israel boycott movement, which continued to weigh on consumer demand for its products.

“The lower revenue and higher loss from operations in the current quarter under review were mainly attributed to the prolonged impact of the ongoing sentiment related to the Middle East conflict,” its bourse filing showed.

Its operating losses, however, increased to RM23.24 million in 2QFY2025, from RM20.46 million a year ago. Loss per share dropped to 1.99 sen in 2QFY2025 from 2.42 sen previously.

BFood did not declare any dividend for the quarter under review.

For the first half of FY2025, its net loss ballooned to RM69 million, tripling from RM23.55 million a year ago, as revenue declined by 46.4% to RM247.3 million, from RM461.09 million previously.

“While the Starbucks brand faces challenges, the group remains committed to growth and diversification by expanding its brand portfolio and leveraging opportunities locally and internationally. The strategic initiatives and plans for Starbucks are expected to enhance performance and drive positive results,” the group said on its prospects.

"With these ongoing efforts to strengthen current business and the group’s strategic direction, it is well-positioned for further progress and stronger financial results," it added.

BFood's cash and cash equivalent almost halved to RM24.08 million as at end-December 2024, compared to RM44.6 million a year ago.

The company’s borrowings totalled RM333.64 million, of which RM298.5 million are short-term liabilities.

Besides the Starbucks coffee chain in Malaysia and Brunei, the group also operates the Kenny Rogers Roasters chain in Malaysia, as well as the Paris Baguette bakery cafe brand here and in the Philippines.

Shares in BFood dipped half a sen or 1.4% to close at 34.5 sen on Thursday, valuing the group at RM672 million. The stock has fallen by over 41% over the past one year.