Latest news with #BFood
New Straits Times
09-05-2025
- Business
- New Straits Times
Berjaya Food faces steeper losses next three years: CIMB Securities
KUALA LUMPUR: Berjaya Food Bhd (BFood) is projected to post deeper core net losses over the next three financial years, following a weaker-than-expected quarterly performance, according to CIMB Securities Sdn Bhd. The firm said BFood's core net loss for the third quarter ended March 31, 2025 (3QFY25) widened by 17.9 per cent year-on-year to RM36.7 million, falling short of expectations. This brought the core net loss for the first nine months of the financial year ending June 30, 2025 (9M FY25) to RM116.5 million, a 112 per cent of its own FY25 previous loss estimate of RM104 million and 126 per cent of the Bloomberg consensus forecast of RM92.1 million. The earnings miss was attributed to weaker-than-expected revenue from Starbucks and KKR operations, alongside higher-than-anticipated start-up costs related to its overseas expansion efforts. "While we expect 4QFY25 net earnings to remain in the red, we expect narrower losses on a quarterly basis owing to higher sales following the end of the fasting month as well as abating impact from boycott activities linked to the Israel-Palestine war," the firm added. Concurrently, CIMB Securities widened its FY25–FY27 loss projections for BFood by 28 per cent to 15 per cent. "We have raised our core net loss estimates for FY25, FY26 and FY27 to RM133 million, RM71 million and RM23 million respectively, up from RM104 million, RM61 million and RM20 million. These revisions reflect a slower-than-expected sales recover," it added. The firm kept its "reduce" rating on the company with a lower target price of 28 sen from 32 sen previously. CIMB Securities also revised its valuation methodology for BFood, now pegging the stock to a lower target multiple of 2.2 times 2026 price-to-book value (P/BV), compared to 2.4 times previously. This adjustment reflects concerns over Starbucks' weakening brand equity in Malaysia, which has been affected by prolonged consumer boycotts, as well as intensifying competition in the domestic food and beverage (F&B) segment. The firm noted that while BFood is currently trading at 2.5 times calendar year 2026 forecast price-to-book value (P/BV), this valuation does not yet reflect the group's structural challenges, particularly its continued loss-making trajectory, albeit with narrowing losses, projected through FY25 to FY27.
The Star
08-05-2025
- Business
- The Star
BFood sticks to expansion plan despite setbacks
BFood said although current growth is modest, significant efforts are underway to reposition the business for greater resilience. PETALING JAYA: Berjaya Food Bhd (BFood) has reported its sixth consecutive loss-making quarter but remains committed to growth and diversification by expanding its brand portfolio and exploring both local and international markets, despite ongoing challenges faced at Starbucks. BFood said although current growth is modest, significant efforts are underway to reposition the business for greater resilience. For the third quarter ended March 31, 2025 (3Q25), BFood posted a wider net loss of RM37.2mil, compared to RM29.8mil in the same period last year. This marks its sixth straight quarterly loss. Revenue fell to RM113.6mil, down from RM138.6mil a year ago, while loss per share rose to 2.10 sen from 1.68 sen. The lower revenue was mainly due to a reduced number of stores in operation.
The Star
08-05-2025
- Business
- The Star
Berjaya Food reports wider loss in 3Q25, remains focused on long-term growth and expansion
KUALA LUMPUR: Berjaya Food Bhd (BFood), which reported its sixth consecutive loss-making quarter, remains committed to growth and diversification by actively expanding its brand portfolio and exploring both local and international markets, despite ongoing challenges faced by Starbucks. BFood said that although current growth remains modest, significant efforts are underway to reposition the business for greater resilience. 'The group is focusing on steadily building a strong foundation for future value creation. Strategic initiatives are already underway to enhance operational performance, and though the impact may not yet be substantial, the direction is clear. 'With continuous efforts to strengthen the core business and execute on its strategic roadmap, the group is well-positioned for sustained progress and improved financial outcomes over time,' BFood said in a filing with Bursa Malaysia. In the third quarter ended March 31 (3Q25), BFood posted a wider net loss of RM37.2mil, compared to RM29.8mil in the same period last year, marking its sixth consecutive loss-making quarter. Revenue for the quarter fell to RM113.6mil, down from RM138.6mil last year, while loss per share increased to 2.10 sen, compared to 1.68 sen previously. BFood said the lower revenue was mainly due to a reduced number of stores in operation compared to the corresponding quarter of the previous year. It said the higher loss was mainly due to the weaker performance of Kenny Rogers Roasters' operations and additional pre-operating costs incurred for the group's overseas operations For the nine months ended March 31, BFood reported a net loss of RM106.2mil, compared to RM53.3mil previously, while revenue dropped to RM360.9mil from RM599.7mil last year. BFood attributed the lower revenue and profit to the prolonged impact of the ongoing sentiment surrounding the Middle East conflict, which affected market dynamics and influenced customer spending patterns.
New Straits Times
23-04-2025
- Business
- New Straits Times
Berjaya Food enters Iceland with two Starbucks outlets
KUALA LUMPUR: Berjaya Food Bhd (BFood) will open two Starbucks stores in Reykjavik, Iceland, next month under a licensing agreement with Starbucks Coffee Company. This marks the group's first entry into the Icelandic coffee market via its subsidiary, Berjaya Food International (BFI), it said in a statement today. The first outlet will open in May on Reykjavik's main shopping street, followed by a second in the city's new harbour district. Exact dates and addresses were not disclosed. "We are thrilled to finally bring Starbucks to Iceland and hope that these stores will be a destination for excellent coffee and a third place for the community," said BFood group chief executive officer Datuk Sydney Quays. "As we introduce the iconic Starbucks experience and warm Malaysian hospitality, we are also committed to empowering the local community by creating job opportunities and sourcing from local businesses," he added. Starbucks Europe, Middle East and Africa president Duncan Moir said the company is pleased to expand its presence in the Nordic markets with its long-term partner BFood, and to contribute to the local coffee community in the region. "Building on our 26-year relationship with BFood, we are excited to further connect with more customers over a handcrafted Starbucks beverage and make impactful investments in our green apron partners (employees) as well as the community." BFood currently operates Starbucks outlets in Malaysia and Brunei, and holds other food brands such as Paris Baguette and Kenny Rogers Roasters.
The Sun
23-04-2025
- Business
- The Sun
Berjaya Food to open Iceland's first-ever Starbucks retail stores in Reykjavik in May
PETALING JAYA: Berjaya Food Bhd (BFood) through subsidiary Berjaya Food International is set to introduce Iceland's first-ever Starbucks retail stores in Reykjavik in May, under an operating licence granted by Starbucks Coffee Company. This expansion marks the first entry of a Malaysian public-listed food and beverage company into the Icelandic coffee market. Opening in May in the heart of the city, the first store will be located at Reykjavik's bustling main shopping street, known for its vibrant mix of boutiques, bars, restaurants and cafes. The second location will later be opened in a lively hub for food, shopping, and culture, playing a key role in shaping the diverse community of Reykjavik's new harbour district. The opening dates and exact locations will be announced in due course. 'We are thrilled to finally bring Starbucks to Iceland and hope that these stores will be a destination for excellent coffee and a third place for the community,' said BFood Group CEO Datuk Sydney Quays. 'As we introduce the iconic Starbucks Experience and warm Malaysian hospitality, we are also committed to empowering the local community by creating job opportunities and sourcing from local businesses,' he added. The company remains dedicated to upholding Starbucks' promises that customers in other markets have come to know, with the goal of serving the world's finest coffee, and to contribute positively to the community. 'We're pleased to expand our presence in the Nordic markets alongside our trusted and long-term business partner, Berjaya Food Berhad, and contribute to the vibrant local coffee community in the region,' said Duncan Moir, president of Starbucks Europe, Middle East and Africa. 'Building on our 26-year relationship with BFood, we are excited to further connect with more customers over a handcrafted Starbucks beverage and make impactful investments in our green apron partners (employees) as well as the community,' he added.
