(MENAFN) Starbucks' Malaysian operations reported a sharp 36% year-on-year revenue drop for the financial year ending June 2025, as mounting public boycotts tied to Israel's war on Gaza continued to disrupt business, according to financial results released Wednesday by Berjaya Food Berhad, the local franchise holder.

Total revenue for the full year slumped to 477 million Malaysian ringgits (approximately $113 million), while the company recorded a net loss of $69 million, the filing showed.

The downturn was particularly steep in the April–June quarter. Revenue for the three-month period fell to $27.4 million, while quarterly losses deepened to $44.4 million.

Berjaya Food directly linked the financial downturn to geopolitical tensions, stating: "The lower revenue was primarily attributed to the prolonged impact of the ongoing sentiment related to the Middle East conflict, which affected market dynamics and influenced customers' spending patterns."

Calls to boycott Western brands perceived to have ties to Israel have surged amid Israel's continued military operations in Gaza, now entering their eleventh month.

Since October 2023, Israeli air and ground assaults have killed nearly 63,000 Palestinians, triggering a humanitarian catastrophe marked by famine and massive infrastructure collapse.

Israel is currently facing a genocide case at the International Court of Justice (ICJ) over its actions in the besieged coastal territory.

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