Latest news with #BerjayaFood
New Straits Times
13-05-2025
- Business
- New Straits Times
CIMB cuts Berjaya Food forecasts amid weak Q3, sluggish sales recovery
KUALA LUMPUR: Berjaya Food Bhd is expected to see slower-than-expected sales recovery after its core net loss widened in the third quarter ended March 31, 2025 (Q3FY25). CIMB Securities has raised its core net loss estimates for the company to RM133 RM133million, RM74 million and RM23 million for financial year 2025 (FY25), FY26 and FY27, respectively. The estimates were revised upwards from the previous forecast of RM104 million, RM61 million and RM20 million. The firm also lowered its target price for the stock to 28 sen from 32 sen previously. Berjaya Food reported a core net loss of RM36.7 million in 3QFY25, after adjusting for one-off items of RM0.5 million. This brought the cumulative nine-month core net loss to RM101.2 million, missing CIMB Securities' expectations at 97 per cent for the FY25 previous loss estimate and 110 per cent of the Bloomberg consensus forecast. "The earnings miss is attributed to lower-than-expected revenue from Starbucks and Kenny Rogers Roasters operations, as well as higher-than-expected start-up costs for its overseas expansion efforts," it said in a note. Berjaya Food is likely to post narrow losses in Q4 Q4FY25 following the end of Ramadan fasting in March. Additionally, the company has indicated early signs of recovery at its Malaysia Starbucks outlets, as the impact of the boycott related to the Israel-Palestine conflict appears to be easing. "The group's ongoing efforts to rationalise its store network by closing underperforming outlets may also support loss mitigation." The firm maintained its 'Reduce' call on the stock.
Free Malaysia Today
23-04-2025
- Business
- Free Malaysia Today
Berjaya to open 2 Starbucks outlets in Iceland
Berjaya Food has faced significant challenges due to the boycott of Starbucks Malaysia, which was sparked by the Palestinian-Israeli conflict. PETALING JAYA : A Berjaya Food Bhd subsidiary is set to introduce the first-ever Starbucks stores in Iceland next month under an operating licence granted by Starbucks. Berjaya Food Group CEO Sydney Quays said the expansion marks the first entry of a Malaysian public-listed food and beverage company into Iceland's coffee market. In a statement, Quays said Berjaya Food International (BFI) would be opening the first store at Reykjavik's main shopping street while the second outlet would be opened in the city's new harbour district. The opening dates and exact locations will be announced in due course. '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 boycott of Starbucks Malaysia, which was sparked by the Palestinian-Israeli conflict, has heavily impacted Berjaya Food. In February, Bloomberg reported that Berjaya Food's hundreds of Starbucks' outlets across Malaysia contributed to the company's fifth straight quarterly loss after boycotts of US fast food brands caused by America's support of Israel's offensive in Gaza. Berjaya Food reported a net loss of RM70.3 million for the six-month period that ended in December. Berjaya Group founder Vincent Tan said Starbucks Malaysia was seeing an improvement in sales as the boycott had tapered off.
