Boustead Holdings Delivers Improved Results
KUALA LUMPUR, November 30, 2017 - Boustead Holdings Berhad (BHB) recorded a strong performance for its third quarter ended 30 September 2017. Profit after tax (PAT) increased to RM581 million compared with RM93 million in the previous year’s corresponding quarter, while profit before tax (PBT) grew to RM643 million from RM120 million in the same quarter last year. These improved results were achieved on the back of gains realised on the disposal of plantation land amounting to RM555 million. Revenue for the quarter under review came in at RM2.5 billion.
For the nine-month period ended 30 September 2017, the Group posted a higher PAT of RM749 million compared with RM404 million in last year’s corresponding period, while PBT rose to RM877 million from RM498 million in the same period last year. Revenue for the nine-month period increased to RM7.2 billion, up by 22% from RM5.9 billion in the previous year’s corresponding period.
YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad, said, “We are pleased with our performance, which was driven by gains from the disposal of plantation lands. Apart from this, most of our other Divisions recorded solid results for the period under review. The fact that Boustead remains a conglomerate with multiple business streams provides our investors and shareholders with a broader opportunity to leverage on the strengths of our various Divisions, even when certain Divisions may be impacted by market conditions.”
“In line with the Group’s commitment to enhancing value for our shareholders, the Board declared a third interim dividend of 3 sen per share for the financial year ending 31 December 2017. The dividend will be paid on 29 December 2017 to shareholders on the register as at 18 December 2017,” concluded YBhg Tan Sri Dato’ Seri Lodin.
The key contributor for the nine-month period was the Plantation Division, with an improved profit of RM685 million compared with RM201 million in the same period last year. This was mainly due to gains realised on disposal of plantation land amounting to RM555 million. Earnings were further supported by higher palm product prices and lower finance costs. Average crude palm oil price for the nine-month period increased by 16% to RM2,871 per metric tonne (MT). Fresh fruit bunches crop production grew to 696,668 MT, up by 5% from the previous year as a result of improved yields post El-Nino.
The Trading & Industrial Division recorded a higher profit of RM87 million for the nine-month period, compared with RM81 million in the previous year’s corresponding period. This was mainly due to a higher stockholding gain registered by Boustead Petroleum Marketing Sdn Bhd as a result of increased fuel prices, as well as stronger contributions from UAC Berhad.
The Finance & Investment Division posted an improved profit of RM48 million compared with RM46 million in the same period last year. This was attributable to reduced borrowings and placement of surplus funds as a result of proceeds from the rights issue.
The Pharmaceutical Division registered a lower profit of RM39 million compared with RM53 million in the previous year’s corresponding period. Despite positive contributions from the concession business and the Division’s Indonesian operations, this was mitigated by lower production arising from the temporary closure of certain production lines in the preceding second quarter for preparatory works to facilitate the commercialisation of new products that were approved ahead of schedule.
The Heavy Industries Division delivered a profit of RM23 million, marking a turnaround from the deficit recorded in the same period last year. This was achieved on the back of better contributions from Boustead Naval Shipyard (BNS), which continued to make good progress on the Littoral Combat Ship project and other ship repair projects. BNS also benefited from recognised income from the Littoral Mission Ship project and the reversal of provision for Liquidated Ascertained Damages on ship repair projects.
Meanwhile, the Property Division recorded a deficit of RM6 million. Despite stronger results achieved by its hotel segment on the back of improved occupancy rates, the Division was impacted by start-up costs for MyTOWN Shopping Centre as well as lower earnings from property development activities in Taman Mutiara Rini, Johor.
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 2017, Boustead Holdings Berhad’s paid-up capital was RM2.7 billion while its shareholders’ funds stood at RM5.9 billion. Market capitalisation is currently in the region of RM6.1 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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