Boustead Registers Improved Q4 PAT of RM324 million
Announces Dividend Pay-out of 5 sen
KUALA LUMPUR, February 27, 2015 – Boustead Holdings Berhad (Boustead) recorded a profit after tax (PAT) of RM324 million for the fourth quarter ended 31 December 2014. This represents a 42% increase from RM228 million in the previous year’s corresponding quarter. PBT for the quarter also saw an increase, improving to RM356 million compared with RM281 million last year. Revenue for the quarter stood at RM2.8 billion, lower compared with RM3.6 billion recorded in the previous year’s corresponding quarter.
Full year PAT of RM533 million saw a slight 5% decrease from the previous year’s RM560 million. For the 12-month period, PBT of RM686 million was marginally lower compared with the previous year’s results of RM708 million. This was achieved on the back of a turnover of RM10.6 billion compared with the previous year’s RM11.2 billion. If not for the one-off gain of RM137 million from the privatisation of Al-Hadharah Boustead REIT in 2013, the results for 2014 would have been better than 2013.
Earnings per share for the 12-month period was 39.5 sen, while net assets per share stood at RM5.69 as at 31 December 2014.
The Group will pay out a dividend of 5 sen per share for the final quarter of the year. To date, dividends totalling 21 sen have been paid out to shareholders, while the remaining 5 sen will be paid on 31 March 2015 to shareholders on the register as at 19 March 2015.
YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad, said, “Our focus has always been to deliver value to our shareholders, which is why we are committed to frequent dividend payments. For the year under review, we will be paying out a total dividend of 26 sen per share, representing a 5.4% yield based on the closing stock price for the financial year. All this would not be possible without our strong fundamentals.”
“Given the trying economic conditions for the year which have dampened our earnings growth, the Group has demonstrated its resilience with the performance of our six Divisions that have delivered a cumulative profit of almost RM700 million.”
The primary contributor to the Group’s results during the financial year, the Property Division delivered a solid PBT of RM295 million, a considerable 37% increase compared with last year due to strong appreciation in value of the Group’s strategic land banks, land sales as well as demand for our commercial and retail spaces.
The Finance & Investment Division posted a profit of RM110 million, signifying a 7% year-on-year improvement. As the Division’s key earner, the Affin Group delivered a solid contribution for the year under review.
The Pharmaceutical Division posted a higher profit of RM100 million compared with RM71 million last year, mainly due to solid contributions from both its concession and non-concession businesses.
The Plantation Division recorded a profit of RM90 million compared with RM131 million recorded in 2013. The results for 2013 included a special dividend as a result of Al-Hadharah Boustead REIT’s privatisation. A slight 2% gain from the previous year’s price of RM2,353 per metric tonne (MT), CPO prices averaged at RM2,401 for 2014, while fresh fruit bunches (FFB) production was stable at 1,037,000 MT.
Meanwhile, the Trading and Industrial Division registered a lower profit of RM65 million, compared with the previous year’s RM140 million due to inventory holding losses as a result of the decline in fuel prices. The previous year’s results were supplemented by divestment and inventory holding gains..
The Heavy Industries Division recorded a successful turnaround to deliver a profit of RM26 million compared with the previous year’s loss of RM89 million. This was a direct result of improved contribution from Boustead Naval Shipyard Sdn Bhd.
“We are highly encouraged by the opportunities that lie inherent within our six Divisions. As a resilient and diversified conglomerate which contributes positively to the Malaysian economy, we are confident in our ability to weather the economic uncertainties and deliver sustained earnings,” 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 31 December 2014, Boustead Holdings Berhad’s paid-up capital was RM517 million while its shareholders’ funds stood at RM5.9 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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