Boustead Records A 33% Increase In PAT For Q2
KUALA LUMPUR, August 21, 2013 – Boustead Holdings Berhad (Boustead) recorded a profit after tax (PAT) of RM75 million for its second quarter ended 30 June 2013, a 33% increase compared with last year’s corresponding quarter. The Group registered a profit before tax (PBT) of RM93.1 million, up by 17% from RM79.4 million in the previous year’s quarter.
Cumulatively for the six month period, the Group’s PAT stood at RM209 million while PBT was RM268 million. These results were achieved on the back of a revenue of RM4.9 billion. For the period under review, earnings per share (EPS) were 5.9 sen while net assets per share stood at RM4.52.
The Group remains dedicated to delivering value to shareholders and in line with its dividend policy, the Directors have declared a single-tier dividend of 7.5 sen per share for the year ending 31 December 2013 as per the entitlement date on 13 September 2013 and payable on 30 September 2013.
YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad said, “As a strong dividend yielding stock, we are conscious of our duty to our shareholders and are glad to be paying out a total of RM78 million in dividend to our shareholders for the fiscal quarter bringing total dividend payout for the half year period to 15 sen amounting to RM155 million.”
The Property Division was the biggest contributor to the Group, delivering a PBT of RM77 million for the six month period, marking a 38% increase compared with last year’s RM56 million. The Division’s strong results were attributed to the sale of a corporate lot at the highly sought after Mutiara Damansara development in Selangor in addition to increased progress billings for its property development projects as well a gain of RM15 million from the disposal of an investment property.
Given the fact that legacy projects no longer have an impact on the Division’s results, the Heavy Industries Division was able to record a PBT of RM29 million for the cumulative period compared with a loss of RM33 million last year. Progress billings for the Littoral Combat Ship project as well as increased profit contribution from MHS Aviation had a positive impact on the Division.
The Pharmaceutical Division reported a PBT of RM32 million in the first half of the financial year, a drop compared with last year’s corresponding period mainly as a result of reduced sales from the Division’s concession business, provision for doubtful debts and drop in production volume.
The Plantation Division recorded a lower PBT of RM16 million for the six month period as it was once more affected by dipping Crude Palm Oil (CPO) prices. The average CPO price realised was RM2,328 per metric tonne (MT), a decrease of 27% against last year’s corresponding period average of RM3,190 MT. At the same time, lower fresh fruit bunches crop production also had an impact on the Division.
The Finance & Investment Division posted a PBT of RM49 million for the half year period consistent with the same period last year. The results were supported by contributions from the Affin Group and Cadbury Confectionary Malaysia.
The Trading and Industrial Division delivered a profit of RM64 million in the first half of the financial year, an improvement compared with RM63 million for the same period last year despite sluggish sales in the building material segment. This was primarily due to a 12% increase in profit from BH Petrol as a result of higher sales volume and a gain from the disposal of a property.
“We are buoyed by the first half’s positive performance and are cautiously optimistic that the remaining half of the financial year will be positive.” YBhg Tan Sri Dato’ Seri Lodin concluded.
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 & industrial and pharmaceutical. As at 30 June 2013, Boustead Holdings Berhad’s paid-up capital was RM517 million while its shareholders’ funds stood at RM4.7 billion. Market capitalisation is currently in excess of RM5.4 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 Plantations Berhad
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