Boustead Delivers Improved Full Year PAT of RM560 Million
KUALA LUMPUR, February 27, 2014 – Boustead Holdings Berhad (Boustead) delivered strong results for the financial year ended 31 December 2013, with a higher profit after tax (PAT) of RM560 million, up by 12% compared with RM499 million in the previous financial year. Profit before tax (PBT) increased to RM708 million from RM593 million last year. This was achieved on the back of a turnover of RM11.2 billion compared with the previous year’s RM9.8 billion.
For its fourth quarter ended 31 December 2013, the Group registered a PAT of RM228 million. This represents a 50% increase from RM152 million in the previous year’s corresponding quarter. PBT for the quarter under review jumped substantially by 78% to RM281 million while revenue improved to RM3.6 billion.
Earnings per share for the 12-month period was 46 sen, while net assets per share stood at RM5.06 as at 31 December 2013.
YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad said, “Though the year was not without its challenges, our Group has performed satisfactorily. Our strong results were supported by a gain of RM137 million on the disposal of investments, following the successful privatisation of Al-Hadharah Boustead REIT.”
In view of the Group’s performance and its commitment to deliver enhanced shareholder value, the Board will pay a dividend of 7.5 sen per share for the financial year. This will bring total dividend for the year to 30 sen per share. To date, dividends amounting to 22.5 sen per share have been paid to shareholders. The remaining amount will be paid on 31 March 2014 to shareholders on the register as at 17 March 2014.
For the year under review, the Plantation Division recorded a profit of RM131 million, a drop from RM206 million in the previous year. The reduction was attributable to depressed crude palm oil prices during the year, resulting in a lower average CPO price of RM2,353 per metric tonne (MT) compared with RM2,902 per MT in the last financial year. Crop production was 1,043,280 MT, 5% short from the previous year.
The Property Division was the primary contributor to the Group during the financial year, delivering an improved profit of RM215 million compared with RM161 million last year. This was achieved due to higher progress billings and the sale of corporate lots.
The Trading & Industrial Division saw a dip in profitability with RM140 million, compared with the previous year’s RM159 million which was buoyed by a higher gain on disposal of property. The building material segment was also depressed by sluggish sales during the year. However, the Division was supported by strong contributions from Boustead Petroleum Marketing Sdn Bhd due to higher sales volume in 2013.
The Finance & Investment Division posted a profit of RM103 million, a slight variance compared with RM110 million in the previous year. The Affin Group remained the Division’s key earner, delivering a solid contribution in the year under review.
The Pharmaceutical Division registered a profit of RM71 million compared with RM80 million last year. This reduction was mainly due to higher provision for doubtful debts. Despite this, the Division saw top line growth in both its concession and non-concession businesses, with new tenders awarded during the year.
The Heavy Industries Division recorded a loss of RM89 million compared with last year’s loss of RM124 million. The Division was impacted by upward revision of costs for the Littoral Combat Ship project as a result of revisions on the scope of work with various stakeholders. The Division also experienced cost overruns arising from ship repair projects and impairment of long outstanding trade receivables.
“As the global economy looks to be on the path to recovery, we are optimistic that we will be able to grow. In particular, despite the sluggish performance of CPO in 2013, prospects are improving as CPO prices grow stronger which certainly bodes well for the Group. We are well on track to completing our corporate exercise to unlock the value of our plantation assets, with the IPO and listing of Boustead Plantations Berhad slated for completion in the year ahead.”
“We will remain focused on achieving organic and inorganic growth as we move forward, as well as pursuing new opportunities to enhance the Group’s prospects,” 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 & industrial and pharmaceutical. As at 31 December 2013, Boustead Holdings Berhad’s paid-up capital was RM517 million while its shareholders’ funds stood at RM5.2 billion. Market capitalisation is currently in excess of RM5.5 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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