Berjaya Food

Starbucks Boycott Shakes Berjaya Food: From Profits to Losses

Discover how a Starbucks boycott led Berjaya Food into a financial rollercoaster with a RM42.6 million net loss. Can they bounce back?

Starbucks boycott has shaken Berjaya Food Bhd (BFood), plunging them into a tumultuous financial journey. The second quarter ended on Dec 31, 2023, saw the company shift from a net profit of RM35.5 million to a staggering net loss of RM42.6 million. Analysts are downgrading BFood's stock after this significant loss, warning of persistent challenges ahead. The impact of the boycott on Starbucks, their main brand, has been profound, with shares falling by 7.55% amid earnings pressure.

However, amidst the storm, Berjaya Food remains optimistic about their performance in the upcoming quarters. The company is hopeful for improvement and aims to regain momentum despite the setbacks. Vincent Tan's Berjaya Food has faced intense scrutiny, attributing the losses to the boycott following the Israel-Hamas conflict. Prolonged consumer fury has hit the company hard, showcasing the power of social movements on businesses.

Despite the challenges, Berjaya Food managed to generate RM182.55 million in revenue for the second quarter, showing resilience amid adversity. This revenue marked a significant decline from RM295.32 million, reflecting the toll of the Starbucks boycott. The company's struggle highlights the delicate balance businesses face in navigating social and political issues that impact consumer sentiments.

In conclusion, the Starbucks boycott has not only led to financial losses for Berjaya Food but has also sparked discussions on the intersection of business and social responsibility. The resilience shown in generating revenue amidst challenges underscores the company's determination to weather the storm. As BFood navigates these turbulent times, the outcome remains uncertain, raising questions about the long-term effects of consumer activism on corporate success.