Boustead’s PAT Up By 91%
KUALA LUMPUR, November 20, 2012 – Boustead Holdings Berhad (Boustead) demonstrated once again its ability to deliver improved earnings as the Group recorded a profit after tax of RM107 million for the third quarter ended 30 September 2012 compared with RM56 million for the second quarter of the current financial year, signifying a commendable 91% jump.
Boustead’s profit before tax for the third quarter was RM141 million compared with RM80 million for the preceding quarter of the current financial year. Cumulatively for the nine month period, profit after tax came in at RM352 million. These results were achieved on the back of a significantly improved turnover of RM7.5 billion for the nine month period compared with RM6 billion for the corresponding period last year.
For the third quarter under review, earnings per share (EPS) was 7.5 sen compared with 4.2 sen for the previous quarter, The Group’s net asset per share was RM4.46 as at September 30, 2012 (31 Dec 2011: RM4.30).
In line with the Group’s dividend policy of delivering value to its shareholders the Board of Directors declared an increased dividend of 10 sen (Q2: 7.5 sen) for the period under review bringing total dividends for the year to date to 25 sen.
YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad said, “We are pleased with our third quarter results which have shown improvements driven by our Plantation Division followed by almost all other Divisions which have shown significant improvements on year-on-year comparison.”
The Plantation Division delivered a profit of RM162 million for the nine month period compared with RM267 million last year. Earnings were impacted due to the decline in palm product prices as well as crop production. For the nine month period, the average palm oil price was RM3,076 per MT, a decrease of 8% compared with last year’s average of RM3,350 per MT.
The Trading and Manufacturing Division reported a profit of RM103 million compared with RM76 million for the same period last year. Improved earnings coupled with higher sales volume from Boustead Petroleum Marketing Sdn Bhd were the key factors which contributed to the Division’s earnings.
The Pharmaceutical Division’s contribution to the Group for the first nine months of the year was RM79 million compared with RM51 million for the corresponding period last year, marking a 55% growth in profitability. Pharmaniaga has significantly contributed towards the profitability of the Group since they became part of Boustead. With enhanced operational efficiencies in both its domestic and overseas businesses as well as higher sales volume to the Government sector Pharmaniaga is expected to continue with this growth curve.
Cumulatively, the Finance and Investment Division had also performed exceedingly well recording a profit of RM77 million for the nine month period compared with RM38 million last year. Improvements in profitability were due to strong contributions from the Affin Group as well as enhanced results by other business units within the Division.
The Property Division registered a profit of RM76 million for the nine month period compared with RM58 million last year. This was mainly driven by gains attributable to the disposal of a vacant land during the first quarter of this financial year.
Meanwhile, the Heavy Industries Division posted a deficit of RM51 million for the nine month period, primarily due to losses from the commercial shipbuilding operations brought about by escalations in cost. The maintenance, repair and overhaul businesses also experienced a dip in results which affected the Division’s bottom line.
“We are ever cognisant of the fact that external economic conditions can have an impact on our earnings. Nevertheless, we have performed satisfactorily this quarter and hope to maintain this momentum albeit with cautious optimism,” concluded YBhg Tan Sri Dato’ Seri Lodin.
Since its inception as a modest trading entity more than 180 years ago, the Boustead Group has grown by leaps and bounds to comprise more than 90 subsidiary and associate companies, and has substantial interests in various sectors of the Malaysian economy. The Boustead Group's operations are focused in six key areas; plantation, heavy industries, property, finance & investment, trading & manufacturing and pharmaceutical. As at 30 September 2012, Boustead Holdings Berhad’s paid-up capital was RM517 million while its shareholders’ funds stood at RM4.6 billion. Market capitalisation is currently at RM5.2 billion.
Forward looking statements
This release may contain certain forward-looking statements with respect to the financial conditions, results of operations and business of the Group and certain plans and objectives of Boustead Holdings Berhad with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
on behalf of: Boustead Holdings Berhad
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