Berjaya Food

[winston]

Starbucks boycott drags Berjaya Food into 2Q red, record low earnings

By Izzul Ikram

Net loss of RM42.58 million for the second quarter ended Dec 31, 2023 (2QFY2024) against a net profit of RM35.49 million a year earlier.

Quarterly revenue fell 38.19% to RM182.55 million versus RM295.32 million previously.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/701777

[winston]

2QFY24 in the red
Maintain SELL with a lower TP of MYR0.40

We expect BFD to face ongoing earnings pressure in the sequential quarters.

While the severity of boycotts may ease over time, consumer preferences may also shift permanently to BFD’s competitors due to brand erosion.

Our earnings revisions reflect a net loss in FY24E while our FY25EFY26E estimates are cut by 26% p.a..

Rolling forward valuation to FY25E, our TP is cut to MYR0.40 (-12sen) based on a normalised mean PER of 11x (vs. 13x previously).

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/365556.pdf

[winston]

not vested

Berjaya Food shares fall amid downgrades, analysts warn of persistent earnings pressure

By Jason Ng

Starbucks franchise that contributes about 90% of its revenue.

BFood has lost some 25% of its market value.

Foreign exchange drag, as 55% of the cost of beverages purchased from the principal Starbucks International is dominated in US dollars.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/701852

[winston]

not vested

Tan Eyes Privatizing Starbucks Malaysia's Parent Amid 28% Drop

Vincent Tan considers privatizing Berjaya Food, owner of Starbucks Malaysia, amid a 28% share decline to $229 million market value.


Key Takeaway

Vincent Tan considers taking Berjaya Food, owner of Starbucks Malaysia with 393 stores, private amid a 28% share decline.

Tan in talks with banks for financing; Berjaya Corp. holds a 55% interest in Berjaya Food.

Move could significantly alter operational structure and future expansion strategies of Berjaya Food's brands.

Source: Super News

https://super.news/en/articles/2024/04/ ... id-28-drop