Main company Berjaya Food Bhd's 9-month revenue for the financial year 2025 experienced a decline of 39.8 percent to RM360.9 million compared to the previous year.
In addition, the core net loss increased 2.6 times to RM101.2 million from only RM38.4 million in the previous same period.
CIMB Securities said the performance was due to lower sales, especially high promotional spending and consumer boycott issues due to the Israel-Palestine conflict.
However, the fourth quarter of the financial year 2025 for losses is forecast to narrow compared to the previous quarter after the end of the month of Ramadan.
Berjaya Food has shown early signs of recovery in Starbucks outlets in Malaysia as the issue of boycott among the people against the product is decreasing.
Analysts Lim Yue Jia and Walter Aw Lik Hsin, said the group's continued efforts in closing underperforming outlets also played a significant role in mitigating the cost of organizational losses.
However, Berjaya Food suffered a net loss of RM36.7 million in the third quarter of the 2025 financial year, this after the company made a one-off adjustment of RM500,000 due to losses from the sale and impairment of property, equipment and factories.
CIMB commented that the weak earnings were driven by lower revenue from Kenny Rogers Roaster (KRR) restaurants, Starbucks cafes as well as high upfront costs in expanding the market overseas.
In short, the decline in performance was due to weak contributions from KRR, fewer stores operating and the impact of the Ramadan month in March.
