Berjaya Foods reports US$69.7M net loss for FY2025 amid Middle East conflict impact

SOUTHEAST ASIA/MIDDLE EAST – Berjaya Foods has reported a net loss of US$69.7 million for the financial year ended June 30, 2025 (FY2025).

The group’s total revenue for the period was US$112.7 million, showing strain primarily due to weakening consumer spending.

The company attributed the softer sales performance to subdued consumer confidence linked to the ongoing conflict in the Middle East, which has affected markets globally.

Economic uncertainty in key regions has weighed heavily on discretionary spending patterns, impacting Berjaya Foods’ overall performance.

Berjaya Foods operates several prominent food and beverage brands in Southeast Asia, including Starbucks outlets across Malaysia and Brunei, Kenny Rogers Roasters in Malaysia, and Paris Baguette in the Philippines.

These flagship franchises contribute significantly to the group’s top-line revenue but faced challenges in the fiscal year.

The group’s financial report highlighted that management will need to make necessary impairment provisions related to property, plant, and equipment (PPE) and right-of-use (ROU) assets.

These impairments arise principally due to the downsizing of Starbucks Malaysia operations as part of ongoing restructuring efforts to optimize cost structures.

Basic loss per share stood at US$0.04, reflecting the net impact of revenue pressures and asset impairments during FY2025.

The group continues to focus on strategic initiatives aimed at managing costs and improving profitability over the medium term.

Despite the loss, Berjaya Foods remains committed to expanding and refining its portfolio across the region.

The company recently signed a memorandum of understanding with Mongolia’s BlueMon Group to bring Krispy Kreme Doughnuts to Mongolia, marking an important step in its international growth journey.

Berjaya Foods’ portfolio diversification across multiple brands and countries may offer some resilience as it navigates uncertain macroeconomic conditions.

However, the ongoing geopolitical tensions and market volatility are expected to continue influencing consumer behavior.

The company’s management emphasizes caution but remains optimistic about recovery prospects as global stability improves and consumer confidence returns.

Efforts to streamline operations, optimize assets, and explore new market opportunities reflect Berjaya Foods’ long-term growth strategy amid challenging external environments.

Stakeholders will be watching closely for updates on restructuring outcomes and new business developments that could turn around the current profitability trajectory.

Berjaya Foods’ FY2025 financial results underscore the complex challenges facing foodservice companies operating amid global uncertainties and geopolitical disruptions.

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