Berjaya Food exits Paris Baguette Malaysia after two years of losses

Berjaya Food has exited the Paris Baguette business in Malaysia, selling its entire 50% stake in Berjaya Paris Baguette (BPB) to its joint venture partner, Paris Baguette Singapore (PBS), for a nominal RM1. According to a Bursa Malaysia filing, the disposal was completed on 30 June, giving the Singapore-based franchisor full ownership of the bakery chain's Malaysian operations. BPB, which launched the Paris Baguette brand in Malaysia in January 2023, has been loss-making since it began operations. The company added that the move forms part of its divestment plan to exit the Paris Baguette business in Malaysia, allowing it to eliminate further exposure to the venture's ongoing losses and redirect resources towards its core businesses and other growth opportunities. As of 31 December 2025, BPB recorded an unaudited loss after tax of RM67.09 million and net liabilities of RM33.41 million. Berjaya Food also disclosed that its original RM20 million investment in the joint venture, made since its incorporation in July 2022, had already been fully impaired. Following the completion of the sale, BPB has ceased to be a joint venture company of Berjaya Food. Despite the exit, the company said the disposal is not expected to have a material impact on the group's earnings, net assets or gearing for the financial year ended 30 June 2026. The Malaysian venture was established in July 2022 as a 50:50 partnership between Berjaya Food and PBS to develop and operate the South Korean bakery chain locally. PBS, the franchisor, is a wholly owned subsidiary of South Korea's Sangmidang Holding. The exit comes as Berjaya Food continues to streamline its portfolio amid challenging market conditions. The group said the disposal was in the best interests of the company, enabling management to focus on businesses with stronger long-term growth potential. In March last year, Paris Baguette opened a new halal-certified regional manufacturing hub in Nusajaya Tech Park, Johor, Malaysia as part of its strategic expansion into the US$2.5 trillion (RM11.2 trillion) halal food market. The facility spanned 12,900 square meters, and houses seven production lines capable of producing up to 300,000 bakery products daily, or 100 million bakery products per annum. It represented an approximate US$56 million (RM247 million) investment by SPC Group, doubling its initial budget. The Paris Baguette regional Halal food hub in Johor was set to allow the bakery brand to expand its supply to the Southeast Asian and Middle Eastern markets. This comes amid the company’s plans to broaden its Halal-certified product offerings to North America, Europe and Africa.