Boustead Registers Q3 PAT of RM50 million
KUALA LUMPUR, November 27, 2014 – Boustead Holdings Berhad (Boustead) registered a profit after tax (PAT) of RM50 million for the third quarter ended 30 September 2014. Profit before tax (PBT) stood at RM86 million while revenue increased to RM2.7 billion.
For the nine-month period, the Group recorded a PAT of RM209 million and a PBT of RM329 million. Revenue for the period grew to RM7.8 billion from RM7.6 billion in the same period last year.
In line with the Group’s commitment to delivering shareholder value, the Board of Directors declared a third interim dividend of 6 sen per share for the financial year ending 31 December 2014. The amount will be paid on 31 December 2014 to shareholders on the register as at 16 December 2014. This will bring cumulative dividends to 21 sen.
YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad, said, “It has indeed been a tough period, as external economic conditions continue to put a strain on our earnings growth. Despite these challenges, most of the Divisions registered a satisfactory profit, and we are firmly committed to delivering value to our shareholders via consistent dividend payouts.”
The strongest contributor for the quarter under review was the Property Division, with a profit of RM25 million from RM16.1 million in the preceding quarter. This was mainly due to improved contributions from the property development segment arising from higher progress billings and the sale of a corporate lot.
The Plantation Division saw a marginal decline, registering a profit of RM20.7 million from RM21 million in the preceding quarter, primarily as a result of lower crude palm oil (CPO) prices and reduced sales volume. The average CPO price for the quarter under review was RM2,220 per metric tonne (MT), while fresh fruit bunches crop production rose to 275,008 per MT, a 12% increase from the preceding quarter.
The Pharmaceutical Division posted a higher profit of RM18.4 million for the third quarter from RM18.1 million in the preceding quarter. This was mainly due to improved margins.
The Finance and Investment Division also recorded a stronger profit of RM19.5 million for the quarter under review compared with RM17.6 million in the preceding quarter.
Meanwhile, the Trading and Industrial Division registered a lower profit of RM9.8 million from RM29.5 million in the preceding quarter, as a result of stockholding loss and weaker contributions from operating units.
The Heavy Industries Division recorded a loss of RM7.4 million for the quarter under review, arising from cost overruns on certain ship repair projects.
“Moving forward, we will remain focused on strengthening our core businesses and exploring viable opportunities in order to enhance our 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 subsidiaries, associate companies and joint ventures, 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 September 2014, Boustead Holdings Berhad’s paid-up capital was RM517 million while its shareholders’ funds stood at RM5.6 billion. Market capitalisation is currently in excess of RM5 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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