Starbucks Malaysia Faces Deeper Losses Amid Boycott*  

KUALA LUMPUR — Analysts predict larger losses for Berjaya Food Bhd (BFood), the operator of Starbucks Malaysia, in the financial year 2025 (FY25) as the ongoing boycott continues to impact sales.  

CIMB Securities revised its FY25 core net loss forecast for BFood to RM98 million, with a gradual improvement to RM58 million in FY26 and RM19 million in FY27. Similarly, Hong Leong Investment Bank (HLIB) lowered its FY25 and FY26 projections to RM93.5 million and RM85.5 million, respectively.  

Despite plans to expand its Paris Baguette stores in Malaysia and the Philippines, and Starbucks stores in Nordic countries, analysts noted these efforts are unlikely to offset the boycott's impact fully.  

HLIB cited the prolonged Israel-Gaza conflict as a factor delaying sales recovery. However, CIMB expects stronger sales in the second quarter of FY25 (2QFY25) from festive spending, though losses may persist.  

CIMB maintains a "Reduced" call on BFood with a target price of 32 sen, while HLIB upholds its "Sell" call at 25 sen, citing persistent headwinds despite promotional efforts.