Boustead Posts Q1 PAT of RM10 million
Declares First Interim Dividend of 5 sen per share
KUALA LUMPUR, May 25, 2016 – Boustead Holdings Berhad (BHB) recorded a profit after tax of RM10 million for its first quarter ended 31 March 2016. Profit before tax came in at RM36 million while revenue for the period stood at RM1.9 billion.
As part of the Group’s commitment to delivering shareholder value, the Board declared a first interim dividend of 5 sen per share for the financial year ending 31 December 2016. The dividend will be paid on 12 July 2016 to shareholders on the register as at 10 June 2016.
YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad, said, “The economic environment continues to be challenging. The volatility of both the domestic and global markets coupled with various external pressures has had an impact on the Group’s earnings.”
“Nevertheless, what is important is that we are able to weather through this tough climate by leveraging on the strength of our diversified core businesses. To this end, due to our solid fundamentals, most of our Divisions recorded satisfactory results despite prevailing market conditions.”
The Plantation Division was the biggest contributor to the Group, delivering a profit of RM44 million, up from RM8 million in the previous year’s corresponding quarter. This was primarily attributable to gains realised on disposal of lands amounting to RM35 million. Average crude palm oil price was RM2,267 per metric tonne (MT), an increase from RM2,236 per MT in the same period last year. Fresh fruit bunches production was lower at 185,205 MT, due to the impact of the El Nino phenomenon.
The Pharmaceutical Division posted a profit of RM22 million. However, this was a drop from RM33 million in the same quarter last year as a result of increased expenses, including selling and distribution costs, amortisation of the Pharmacy Information System and higher finance costs.
The Trading and Industrial Division contributed a higher profit of RM19 million compared with RM13 million in the previous year, on the back of better profit contribution from UAC Berhad and gains realised on disposal of assets by Johan Ceramics Berhad.
The Finance and Investment Division registered an improved profit of RM13 million from RM3 million in the same period last year. This was largely as a result of stronger contribution from the Affin Group, which posted lower allowance for loan impairment.
The Property Division recorded a higher profit of RM11 million from RM10 million in the previous year’s corresponding period. This was mainly attributable to higher margins from the sale of bungalow and petrol station lots.
Meanwhile, the Heavy Industries Division recorded a deficit of RM73 million for the period under review. This was primarily due to the downward revision of margins for the Littoral Combat Ship project and increased operating costs, as well as the slowdown in the oil and gas industry.
“Although it will certainly be a tough year ahead, we are optimistic that the Group will remain resilient over the long-term, building on our strong foundation. We will continue to tighten our operational efficiencies and pursue opportunities for growth in order to deliver sustainable results moving 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 31 March 2016, Boustead Holdings Berhad’s paid-up capital was RM517 million while its shareholders’ funds stood at RM5.7 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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