Boustead’s PAT Up By 41% for Q1
KUALA LUMPUR, May 28, 2012 – Boustead Holdings Berhad (Boustead) kicked of the new financial year on a resounding note recording a profit after tax of RM189.3 million for the first quarter ended March 31, 2012. This signifies a 41% growth over the previous year’s first quarter results of RM134.5 million.
The Group’s profit before tax of RM224 million was also 33% higher than the RM168 million achieved in the first quarter of 2011. These results were achieved on the back of a turnover of RM2.4 billion for the quarter under review compared with RM1.6 billion recorded for the corresponding period last year.
For the period under review, earnings per share (EPS) was 14.0 sen and for the same period last year, EPS was 10.9 sen while net assets per share was RM4.43 (31 December 2011: RM4.30).
As a result of the Group’s performance and in line with its dividend policy, the Board of Directors has declared a dividend of 7.5 sen amounting to a total payout of RM77.6 million for the period under review compared with RM75.2 million paid for the same period last year.
YBhg Tan Sri Dato’ Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad said, “Indeed we have started the financial year on a very strong note and what is more pleasing is that almost all Divisions have delivered handsomely outpacing the results for the same quarter under review last year”.
“Except for one Division, all our Divisions have delivered on the bottom line. We have seen exponential improvements in profit contribution for the quarter under review and the most significant improvements on a year-on-year basis was driven by the Pharmaceutical Division”.
The Plantation Division remained the major contributor to the Group delivering a profit of RM92 million. This was a marginal decrease compared with the corresponding period last year due to lower crude palm oil prices. For the period under review the Division achieved an average CPO price of RM3,143 per MT (corresponding period 2011: RM3,541 per MT). Crop production was higher with fresh fruit bunch for the period under review at 282,171 MT, marking an 11% increase compared with 253,586 MT produced in last year’s first quarter.
The Property Division performed well recording a profit of RM40 million compared with RM12 million achieved in the preceding year’s corresponding period. This was due to a sale of a piece of vacant land during the period under review.
The Pharmaceutical Division reported a profit of RM36 million, a significant increase, compared with RM9 million for the corresponding period last year. Driving these results were improved operational efficiencies which resulted in on time deliveries and better supplier management. These initiatives had a direct impact on the Division’s revenue which then contributed to better margins and profits.
The Trading and Manufacturing Division delivered a profit of RM35 million, a marked improvement compared with RM29 million for the same period last year. The primary driver was BH Petrol which saw higher sales volume and stockholding gains.
The Finance and Investment Division posted a profit of RM26 million compared with RM12 million last year as a result of stronger contribution from the Affin Group.
Meanwhile the Heavy Industries Division posted a deficit of RM5 million due to losses incurred from the commercial shipbuilding segment and the fact that work on the second generation patrol vessels have yet to move into full swing.
“We are optimistic that the coming quarters will bode well for the Group given the positive outlook for CPO prices. Additionally, we expect the Pharmaceutical Division to continue on its positive track record of delivering strong earnings and hope to see progressive billings on the second generation patrol vessels for the Heavy Industries Division.”
“As we look to the next few quarters and despite uncertainties in the global economy, the Group is confident of sustaining its earnings given the potential of organic growth from the various Divisions”, concluded YBhg Tan Sri Dato’ 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 March 2012, Boustead Holdings Berhad’s paid-up capital was RM517 million while its shareholders’ funds stood at RM4.6 billion. Market capitalisation is currently in excess of 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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