Boustead Closes FY2015 with PAT of RM139 Million
Total dividend declared for the year: 20 Sen
KUALA LUMPUR, February 29, 2016 – Boustead Holdings Berhad concluded its financial year ended 31 December 2015 with a profit after tax of RM139 million. Profit before tax for the full year stood at RM269 million, on the back of a revenue of RM8.7 billion.
In line with the Boustead Group’s commitment to its dividend policy, the Board of Directors declared a dividend of 4 sen per share. The dividend will be paid on 12 April 2016 to shareholders. This will bring cumulative dividends to 20 sen per share, representing a 4.7% yield based on the closing stock price for the financial year.
YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad, said, “It has been an exceptionally tough year for most of our Divisions. In particular, we were impacted by the Heavy Industries Division which recorded a deficit for the year, while challenging market conditions and soft consumer sentiment also affected our other Divisions.”
“Nonetheless, challenges are not new to the Boustead Group, as we have overcome many throughout our history. Despite the drop in profit, we are redoubling our efforts to strengthen operational efficiencies and tighten areas that we can improve on, as we expect 2016 to be a tough year as well. Given the Group’s established and diversified core businesses, we were able to pay out a respectable dividend to our shareholders.”
The Property Division was once again the Group’s highest contributor, delivering a profit of RM139 million. However, the Division’s profit was lower compared with the previous year’s contribution of RM295 million which benefitted from the disposal of commercial land in addition to profit contribution from Boustead Ikano, our joint venture company.
The Pharmaceutical Division reported a profit of RM90 million, a 10% decline from RM100 million last year. The Division’s results were impacted by reduced Government orders as well as amortisation for the Pharmacy Information System, although this was mitigated by growth in the non-concession business.
The Plantation Division contributed a profit of RM95 million, a slight improvement from RM90 million in the previous year. Gains on disposal of land totalling RM57 million offset the unfavourable effects of bearish crude palm oil (CPO) prices. Average CPO price stood at RM2,148 per metric tonne (MT), representing a decline of 11% compared with last year’s average of RM2,401 per MT. Fresh fruit bunches production was stable at 1,037,100 MT.
The Finance & Investment Division registered a profit of RM44 million for the year compared with the previous year’s RM110 million, primarily due to weaker contribution from the AFFIN Group which was impacted by impairment of loans and adverse market conditions in the finance and banking sector.
The Trading and Industrial Division contributed a profit of RM38 million compared with the previous year’s RM65 million mainly as a result of losses sustained by the Division’s tiles and paints manufacturing segment. However, despite volatile crude oil prices in 2015, Boustead Petroleum Marketing Sdn Bhd was able to maintain profitability.
The Heavy Industries Division was impacted by a drop in revenue, the provision for liquidated ascertained damages made for KD Kasturi under the Service Life Extension Programme, higher project costs as well as provisions that impacted our bottom line due to the restoration of KD Perantau. As a result, the Division recorded a deficit of RM137 million compared with last year’s profit of RM26 million.
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 2015, Boustead Holdings Berhad’s paid-up capital was RM517 million while its shareholders’ funds stood at RM5.8 billion. Market capitalisation is currently in excess of RM4 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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