Boustead Delivers Improved Q1 PAT
KUALA LUMPUR, May 29, 2017 – Boustead Holdings Berhad (BHB) delivered a strong performance for its first quarter ended 31 March 2017, with a profit after tax of RM41 million, a substantial jump from RM10 million in the previous year’s corresponding quarter. Profit before tax grew to RM72 million compared with RM36 million in the same quarter last year, while revenue increased to RM2.4 billion. .
As a result of the Group’s improved performance, the Board of Directors declared a first interim dividend of 2.5 sen per share for the financial year ending 31 December 2017. The dividend will be paid on 23 June 2017 to shareholders on the register as at 15 June 2017.
YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad said, “Given the diversified nature of the Group, we are pleased that most of our Divisions have performed very well. Our Plantations Division led the way delivering good year-on-year growth, followed by our Trading & Industrial Division.”
“We are conscious that there are tough market conditions ahead, both regionally and internationally, which will definitely have an impact on local sentiments. Nevertheless, our six Divisions are focused on tightening operational efficiencies and enhancing organic growth with a view to deliver on the bottom line.”
The Plantation Division was the biggest contributor to the Group, delivering a profit of RM57 million, up from RM44 million in the previous year’s corresponding quarter. This was primarily attributable to higher palm product prices and improved crop production. Average crude palm oil price was RM3,166 per metric tonne (MT), a 40% increase from RM2,267 per MT in the same period last year. Fresh fruit bunches production rose by 13% to 209,526 MT, due to improved yields as crops recovered from the impact of El Nino.
The Trading & Industrial Division posted a higher profit of RM29 million compared with RM19 million in last year’s corresponding quarter. This was mainly due to stronger contributions from BHPetrol and UAC Berhad.
The Pharmaceutical Division registered an improved profit of RM23 million from RM22 million in the same quarter last year, on the back of increased contribution from both the concession business and private sector business, as well as reduced finance costs.
The Finance & Investment Division recorded a profit of RM21 million, up from RM13 million in the same period last year, as a result of lower net finance cost on the back of reduced borrowings and placement of surplus funds from the proceeds of the Rights Issue. The Division also saw a higher contribution from AFFIN Holdings, mainly due to better other operating income, Islamic banking income and net interest income.
The Property Division recorded a deficit of RM7 million compared with a profit of RM11 million in the same quarter last year, mainly due to start-up costs for the recently opened MyTOWN Shopping Centre. The Division’s bottom line in the previous year was also boosted by higher margins from the sale of bungalow and petrol station lots.
Meanwhile, the Heavy Industries Division posted a loss of RM51 million, an improvement compared with the loss of RM73 million in last year’s corresponding quarter. This was mainly due to a turnaround by Boustead Naval Shipyard and Boustead Heavy Industries Corporation Berhad, on the back of better progress on work for the Littoral Combat Ship project and other ship repair projects. However, this was offset by a deficit incurred by MHS Aviation, due to the continued suspension of operations of the H225 range of aircraft.
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 2017, Boustead Holdings Berhad’s paid-up capital was RM2.7 billion while its shareholders’ funds stood at RM5.6 billion. Market capitalisation is currently in the region of RM5.3 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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