Berjaya Food Losses RM42.58 Million, Malaysian People's Boycott Gives Big Impact
Berjaya Food Bhd (BFood) shares fell by 5.3% today (Thursday) and sank this month's gains.Analysts have warned that pressure is likely to continue for several months following weaker-than-expected second-quarter results.Their stock counter fell to 54 sen which is the lowest level since February 5 in trading this morning. It was trading at 55 sen at 9.30am after more than 4.1 million shares changed hands. The FBM KLCI is down 0.2% since the opening.BFood is now in trouble as the ongoing boycott affects the Starbucks franchise which accounts for about 90% of its revenue. Analysts encourage investors to 'sell' to take profits.Starbucks along with several other global brands such as McDonald's are facing a strong boycott season because of their ties to Israel amid the ongoing conflict in Gaza.Bfood has lost about 25% of its market value on Bursa Malaysia as Israel escalated its deadly attacks on Palestine following the Hamas attack on October 7.The research firm also noted that BFood will face tough times despite cost control efforts due to foreign exchange drag. 55% of the cost of drinks purchased from flagship Starbucks International is dominated in US dollars.BFood reported that they suffered a net loss of RM42.58 million for the second quarter ending Dec 31, 2023, bringing the six-month cumulative loss to RM23.55 million, compared to a net profit of RM70.19 million for the same period last year.
Berjaya Food Bhd (BFood) shares fell by 5.3% today (Thursday) and sank this month's gains.
Analysts have warned that pressure is likely to continue for several months following weaker-than-expected second-quarter results.
Their stock counter fell to 54 sen which is the lowest level since February 5 in trading this morning. It was trading at 55 sen at 9.30am after more than 4.1 million shares changed hands. The FBM KLCI is down 0.2% since the opening.
BFood is now in trouble as the ongoing boycott affects the Starbucks franchise which accounts for about 90% of its revenue. Analysts encourage investors to 'sell' to take profits.
Starbucks along with several other global brands such as McDonald's are facing a strong boycott season because of their ties to Israel amid the ongoing conflict in Gaza.
Bfood has lost about 25% of its market value on Bursa Malaysia as Israel escalated its deadly attacks on Palestine following the Hamas attack on October 7.
The research firm also noted that BFood will face tough times despite cost control efforts due to foreign exchange drag. 55% of the cost of drinks purchased from flagship Starbucks International is dominated in US dollars.
BFood reported that they suffered a net loss of RM42.58 million for the second quarter ending Dec 31, 2023, bringing the six-month cumulative loss to RM23.55 million, compared to a net profit of RM70.19 million for the same period last year.
