Fresh Malaysian Durians Sell Out in China

Word has it that Malaysian durians are already captivating the Chinese market, with the latest shipment of fresh durians selling out within hours of their arrival in China.

 

 

 

 

 

 

 

 

 

 

 

 

 

The positive news comes from none other than Mohamad Sabu, who shared his recent visit to Shenzhen, China on Facebook where he observed the packaging and distribution processes of fresh Malaysian durians by the Joy Wing Mau company. 

 

And during the Malaysian Minister of Agriculture and Food Security's visit to Sam’s Club and Ole supermarkets in the same city, Mohamad Sabu also witnessed the high demand for Musang King durians from Malaysia.

 

In another Facebook post yesterday, he wrote that in China, fresh durians from Malaysia are considered premium and are more expensive than durians imported from Thailand and the Philippines.

 

Starbucks Malaysia operator, Berjaya Food Bhd (BFood) reported a net loss of RM91.5 million for the fiscal year ended June 30, 2024 (FY2024) compared to a net profit of RM103.4 million in the previous year. The company's revenue also fell by 34.56 percent, dropping from RM1.1 billion to RM730.3 million. 

 

BFood said the decline is attributed to a consumer boycott as per the current sentiment related to the Israel-Palestinian conflict and a one-time loss from the sale of their entire stake in Jollibean Foods Pte Ltd.

 

CIMB Securities Sdn Bhd have forecasted a revenue contraction in the financial year 2025 (FY2025) due to sluggish sales recovery from the prolonged boycott and increased competition from established and new coffee chains. 

 

In a research note, they highlighted that this prognostication holds despite BFood’s plans to open new stores in Malaysia and the Nordic market next year.

 

The firm noted that BFood permanently closed three Starbucks outlets and temporarily suspended operations at 25 underperforming stores in Q4 FY2024 which ended June 30, 2024, due to the ongoing boycott. These closures contributed to a 5.8% quarter-on-quarter decline in revenue, bringing it down to RM130 million in Q4 FY2024.

 

As of Q4 FY2024, BFood operated 408 Starbucks stores and 60 Kenny Rogers Roasters outlets in Malaysia. 

 

However, CIMB noted a narrowing of BFood’s core net losses to RM0.1 million in Q4 FY2024 from RM31.1 million in Q3 FY2024, after excluding exceptional items totaling RM38.1 million. This improvement was attributed to better profit margins following the closures of non-performing Starbucks stores.

 

FYI, for Q4 FY2024, BFood reported a net loss of RM38.2 million, against a net profit of RM17.2 million in the same quarter the previous year (4Q FY2023).

 

In a separate analysis, Hong Leong Investment Bank Bhd in a note yesterday, said despite strong brand equity and active promotions, they expect boycott headwinds to stay, at least for the near term, which will greatly drag earnings. After all, Starbucks still make up a big chunk of BFood's revenue for Q4 FY2024 contributing 89 percent.