Boustead’s Q2 PAT JUMPS BY 65%
KUALA LUMPUR, August 18, 2011 – Boustead Holdings Berhad (Boustead) demonstrated once again its ability to deliver improved earnings on a quarter-on-quarter as well as on a half-yearly basis. The Group reported a profit after tax of RM223 million for the second quarter ended 30 June 2011 compared with RM135 million for the first quarter of its current financial year. This marked a 65% jump in profit after tax on a quarter-on-quarter basis.
Profit before tax was also significantly higher with the Group registering a profit of RM251 million for the current quarter under review compared with RM168 million in the preceding quarter representing a 49% increase in profitability.
For the first six months of the current financial year, Boustead recorded a profit after tax of RM358 million, representing a 35% jump compared with RM266 million reported in the corresponding period. These results were achieved on the back of significantly improved turnover of RM3.8 billion during the first half of the financial year compared with RM3 billion for the same period last year.
EPS improved significantly as well for the quarter under review to 19.7 sen compared with 11.9 sen in the preceding quarter. For the half-year period, EPS was 31.6 sen compared with 25.5 sen for the corresponding period last year. The Group’s net assets per share was RM4.62 as at June 30, 2011 (31 Dec 2010: RM4.50).
YBhg Tan Sri Dato’ Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad said, “We are pleased that there has been consistent and improving results illustrated by our profitability markers on the back of our strong revenue. Healthy growth of this nature is a clear validation of our strategy to remain a multifaceted conglomerate with strong lines of businesses”.
“The Boustead Group has become a strong dividend yielding stock. To date, a net dividend of 8 sen per share has been paid out. Our latest proposal of dividend in specie on the basis of 1 Pharmaniaga Berhad share for every 57.5 Boustead shares held is equivalent to a 10 sen distribution per share. Given our new dividend policy, we will continue improving shareholders value via consistent dividend payouts”.
For the cumulative period, the Plantation Division led the Group’s results, delivering the highest profit of RM173 million compared with the other Divisions. This was achieved due to robust crude palm oil (CPO) prices. The Division’s average CPO price for the first half of the year was RM3,441 per MT, an increase of 38% against RM2,495 per MT in the corresponding period. Cumulatively, fresh fruit bunch crop was 550,454 MT. There was a further gain of RM95 million from the disposal of plantation assets to Al-Hadharah REIT which was completed during the current quarter.
The Manufacturing and Trading Division’s contribution to the Group’s profitability for the first six months of the year was RM56 million compared with RM42 million for the same period last year. The primary contributing factor to the Division was BHPetrol, as a result of improved sales and stockholding gains from this business.
The Pharmaceutical Division delivered a significant profit of RM36 million for the first half of the year. Key factors included stronger sales, improved productivity and better management of margins from Pharmaniaga Berhad which is a key contributor to the Division.
The Property Division delivered a profit of RM36 million compared with RM31 million for the same period last year. The driving factor was a result of improved contribution from the property development segment in tandem with the progress of its construction phases.
The Finance and Investment Division was profitable with the main contributor to the Division being AFFIN Holdings Berhad. The Heavy Industries Division recorded a modest loss given that work on the second generation patrol vessels remained at a preliminary stage.
“We are confident that the remaining half of the financial year will see continued organic growth and we hope for all our Divisions to perform well. Given the trend for CPO prices, we expect to see further gains from our Plantation Division as commodity prices remain at healthy levels”, concluded YBhg Tan Sri Dato’ 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 subsidiary and associate companies, 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 & manufacturing and pharmaceutical. As at 30 June 2011, Boustead Holdings Berhad’s paid-up capital was RM 470 million, while its shareholders’ funds stood at RM 4.3 billion. Market capitalisation is currently in excess of RM5.2 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 By: acorn
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