Boustead Records Q3 PAT of RM46.3 million
Declares Third Interim Dividend of 6 sen per share
KUALA LUMPUR, November 30, 2015 – Boustead Holdings Berhad (Boustead) registered a profit after tax (PAT) of RM46.3 million for its third quarter ended 30 September 2015. Profit before tax (PBT) for the Group came in at RM66.7 million on the back of a turnover of RM2.1 billion for the quarter under review. Net assets per share was RM5.60 as at 30 September 2015.
For the nine-month period, the Group recorded a PAT of RM140.2 million and a PBT of RM219.5 million. Revenue for the period stood at RM6.2 billion.
In line with the Group’s dividend policy and its commitment to delivering shareholder value, the Board declared a third interim dividend of 6 sen per share for the financial year ending 31 December 2015. The dividend will be paid on 12 January 2016 to shareholders on the register as at 28 December 2015. This will bring cumulative dividends to 16 sen.
YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad, said, “It has undoubtedly been a trying economic period, with external pressures impacting the Group’s earnings. However, despite the volatile economic climate, the diversified nature of the Group has enabled us to remain resilient and deliver sustained results across most of our Divisions.”
The primary contributor for the nine-month period was the Plantation Division, with a higher PBT of RM88.7 million from RM82.2 million in the previous year’s corresponding period. This was mainly attributable to gains realised on disposal of lands, which mitigated the lower average crude palm oil price of RM2,160 per metric tonne (MT). Fresh fruit bunches crop production for the period was 772,083 MT, consistent with last year as improved crop production from the Group’s Peninsula estates cushioned the effects of last year’s dry weather and labour shortage in Sabah, as well as the ongoing blockades in certain Sarawak estates.
The Pharmaceutical Division delivered an improved performance with a PBT of RM70.7 million for the first nine months, compared with RM68.2 million in the same period last year. This was largely due to favourable manufacturing profit margins and reduced costs, as a result of continuous cost optimisation initiatives and improved productivity.
Meanwhile, the Property Division posted a lower PBT of RM31.2 million for the nine-month period. This was mainly due to lower profit margins on affordable homes which were launched.
The Trading and Industrial Division registered a PBT of RM39.1 million for the nine-month period, a drop from the previous year’s corresponding period on the back of lower revenue, primarily as a result of a decrease in volume and fuel prices.
The Finance and Investment Division posted a lower PBT of RM21.3 million for the first nine months, mainly due to weaker contributions from the AFFIN Group and funding cost of investments.
The Heavy Industries Division recorded a deficit of RM31.6 million for the nine month period. This was primarily attributable to provision of foreseeable loss for the restoration of the vessel KD Perantau during the second quarter of the financial year.
“Despite the challenging environment, by leveraging on our strong track record and multiple business streams, we are confident that we will be able to weather through this and continue to move forward,” 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 2015, Boustead Holdings Berhad’s paid-up share capital was RM517 million while its shareholders’ funds stood at RM5.8 billion. Market capitalisation is currently in excess of RM4.1 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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