Boustead Q3 PAT Up Two-Fold Y-o-Y
KUALA LUMPUR, November 30, 2016 – Boustead Holdings Berhad (BHB) delivered an improved performance for its third quarter ended 30 September 2016, with a profit after tax (PAT) of RM93 million. This marks a substantial 102% increase from RM46 million in the same quarter last year. Profit before tax (PBT) grew to RM120 million compared with RM67 million in the previous year’s corresponding quarter, while revenue stood at RM2.02 billion.
For the nine-month period ended 30 September 2016, the Group recorded a higher PAT of RM404 million compared with RM140 million in the same period last year. PBT rose to RM479 million on the back of gains realised on the disposal of the Group’s stake in Jendela Hikmat Sdn Bhd as well as the sale of non-core plantation lands. Revenue for the period came in at RM5.9 billion.
Earnings per share for the nine-month period was 13.38 sen, while net assets per share was RM3.41 as at 30 September 2016
In line with the Group’s dividend policy and its commitment to delivering shareholder value, the Board declared a third interim dividend of 5 sen per share for the financial year ending 31 December 2016. The dividend will be paid on 22 December 2016 to shareholders on the register as at 15 December 2016.
YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad, said, “Despite persisting global economic headwinds, we are pleased to note that most of our Divisions recorded improved results. This is testament to the fact that our strategy to streamline our core businesses continues to bear fruit. The pick up in crude palm oil prices also contributed to our stronger earnings.”
The primary contributor for the nine-month period was the Property Division, with a higher PBT of RM239 million on the back of a gain on disposal of its associate company Jendela Hikmat Sdn Bhd amounting to RM198 million. However, the Division was impacted by a weaker performance from the hotel segment as well as unrealised foreign exchange loss.
The Plantation Division posted an improved PBT of RM195 million compared with RM89 million in the previous year’s corresponding period. This was primarily due to higher gains on disposal of lands amounting to RM118 million, while increased palm product prices also contributed positively to the bottom line. Average crude palm oil price for the nine-month period increased by 15% to RM2,475 per metric tonne (MT). Fresh fruit bunches crop production was lower at 660,497 MT, mainly as a result of the adverse effects of the El Nino phenomenon, land disputes in Sarawak and a labour shortage for harvesting tall palms.
The Trading & Industrial Division registered a PBT of RM80 million for the nine-month period, compared with RM39 million in the same period last year. This was attributable to stronger contributions from UAC Berhad and Boustead Petroleum Marketing Sdn Bhd (BPM), as well as gains realised on disposal of assets by BPM.
The Pharmaceutical Division recorded a lower PBT of RM53 million compared with RM71 million in the previous year’s corresponding period. This was mainly as a result of weaker operating profit due to lower contributions from the concession business and higher finance costs.
The Finance & Investment Division posted a higher PBT of RM46 million compared with RM21 million in the same period last year, on the back of improved contribution from the AFFIN Group, which recorded a lower allowance for loan impairment.
Meanwhile, the Heavy Industries Division recorded a loss of RM134 million for the nine-month period. This was primarily due to deficits incurred by Boustead Naval Shipyard and MHS Aviation.
“We will continue to undertake measures to strengthen our business divisions and enhance core competencies on an operational level, in order to deliver shareholder value,” 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 2016, Boustead Holdings Berhad’s paid-up capital was RM1.01 billion while its shareholders’ funds stood at RM6.9 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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