Boustead Ends 2012 on a Strong Note
Q4 PAT Up By 54%
KUALA LUMPUR, February 25, 2013 – Boustead Holdings Berhad concluded its financial year ended 31 December 2012 with a profit after tax (PAT) of RM165 million for its fourth quarter, representing a 54% increase compared with its third quarter profit in the current financial year of RM107 million.
The Group’s profit before tax (PBT) for the fourth quarter stood at RM173 million compared with RM141 million recorded for the preceding quarter of the current fiscal year. PBT for the full year was RM619 million while PAT for the full year stood at RM518 million. These results were achieved on the back of a strong full year revenue of RM10.2 billion, marking a substantial 19% gain compared with the previous financial year’s RM8.6 billion.
For the quarter under review, earnings per share (EPS) stood at 14.6 sen while for the full year, EPS was 40.3 sen. Net assets per share was RM4.50 as at December 31, 2012.
YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad said, “It has indeed been a challenging year for us and despite this fact we are glad to have registered a sizable profit of RM619 million. At the same time, we are conscious of our duty to our shareholders and will be paying a further dividend as part of our policy during this quarter. This will bring total dividend for the financial year to 32.5 sen representing a 6.25% yield based on year end market price”.
To date, dividends totalling 25 sen have been paid to shareholders. The remaining 7.5 sen will be paid on 29 March 2013 to shareholders on the register as at 18 March 2013.
For the year under review, despite being affected by plunging Crude Palm Oil (CPO) prices and higher operating costs, the Plantation Division was once again one of the Group’s strongest contributors, delivering a profit of RM206 million. The average CPO price realised was RM2,902 per metric tonne (MT) compared with the previous financial year’s historic high of RM3,272 per MT. Crop production of 1,100,409 MT was 2% short when compared with last year.
The Property Division registered a profit of RM161 million for the year under review as the Group’s stable of properties continue to be well received. However, profit was impacted by lower fair value gain compared with the previous financial year.
With a record profit of RM159 million, the Trading and Manufacturing Division’s results represented a 40% increase compared with last year’s RM113 million. The Division’s solid contribution was due to higher sales volume by its many business units especially Malaysia’s only other homegrown retail petroleum network Boustead Petroleum Marketing Sdn Bhd (BH Petrol) in addition to a gain on disposal of properties.
The Group’s Finance and Investment Division recorded a substantially increased profit of RM110 million, representing a 144% gain compared with the previous financial year’s RM45 million. The Division’s results were supported by a prominent contribution from the Affin Group in addition to stable growth recorded by the Division’s other strategic business units, notably University of Nottingham in Malaysia Sdn Bhd and Cadbury Confectionary Malaysia.
Only in its second year as a contributor to the Group’s bottom line, the Pharmaceutical Division performed well registering a profit of RM80 million, a strong 19% increase over 2011’s RM68 million as a result of higher sales volume to the Government sector and improved profit contribution from its international business mainly in Indonesia.
The Heavy Industries Division was visibly impacted by external factors mainly the downcast economic environment for the maritime sector in addition to cost escalations which contributed to losses in the commercial shipbuilding segment. The decline in earnings caused the Division to record a deficit of RM97 million. In order to mitigate future losses, the Group will be scaling down its reliance on construction of large commercial vessels while developing a portfolio of smaller commercial crafts.
“Our outlook for 2013 though positive does hold some uncertainties which could impact earnings growth. However, what is crucial is that given our diverse stable of investment we should be able to surpass our target.” 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 31 December 2012, Boustead Holdings Berhad’s paid-up capital was RM517 million while its shareholders’ funds stood at RM4.66 billion. Market capitalisation is currently in excess of RM4.8 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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