Bernama Food reported a loss of RM42.6 million due to the Starbucks boycott during the recent Israel-Palestine conflict.
This led to a loss per share of 2.42 sen in the 2nd quarter ending December 31 (2Q24), compared to a profit of RM35.5 million, or 2.02 sen per share, the previous year.
According to Berjaya Food’s quarterly report for the period ending December 31, 2023, the decline in revenue was largely caused by the boycott resulting from conflicts in the Middle East.
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Besides losing money this quarter due to drastically lower sales, they also had a one-time loss because they sold all their ownership in Jollibean Foods Pte Ltd.
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The stock price of Berjaya Food dropped by 1.5 sen, which is about a 2.56% decrease, and closed at 57 sen. As a result, the total value of all its shares, known as market capitalisation, is now RM1.11 billion.
Nonetheless, the Group directors maintain a positive outlook on the operating performance
Despite Berjaya Food experiencing a decline in financial performance during the first two quarters of FY2024, they expect things to get better in terms of operating performance for the remaining two quarters.
“The Board believes that the operating performance will rebound and regain momentum, viewing the current situation as short-term and anticipating positive progress going forward.”
You can read the full report here.
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This post first appeared on WORLD OF BUZZ.