KUALA LUMPUR, November 29, 2010 – Boustead Holdings Berhad (Boustead) continued its strong performance into its third quarter ended September 30, 2010. For the nine-month period under review, the Group registered a profit after tax at RM390 million compared with the corresponding period for the previous financial year of RM239 million. This represents a 63% increase in profit after tax on a year on year basis while for the first nine months for this financial year revenue was RM4.5 billion compared with RM3.9 billion for the same period last year.
For the third quarter ended September 30, 2010, it registered a profit after tax of RM125 million compared with RM109 million for the same period last year. While the Group registered a profit before tax of RM154 million for the third quarter of this financial year, a marked improvement against RM126 million achieved in the preceeding year’s corresponding quarter. This was achieved on the back of a turnover of RM1.5 billion for the quarter under review.
True to its dividend track record, the Group has once again declared a single tier dividend of 12 sen per share, bringing total dividend to date for the financial year to 27 sen. This represents a 106% increase in net dividend declared compared with the first nine months of financial year 2009.
Earnings per share (EPS) for the nine month period was 35.2 sen and net asset per share was RM4.35 (31 Dec 2009: RM4.20).
YBhg Tan Sri Dato’ Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad said, “Looking ahead, all the elements are in place for another year of growth for the Group as we have already realised some of our strategies in delivering our earnings track record. Coupled with this fact, with CPO prices performing very well, we expect our Plantation Division to be a driving force in delivering enhanced profitability to the Group’s bottom-line.”
“We are confident with an even more dynamic and vibrant landscape ahead, we will be able to leverage on our fundamentals, which remain very strong, to deliver a good year for our shareholders.”
“We are heartened by the market’s confidence in the Boustead Group as reflected by our current market capitalisation. In essence, this is testament to our energy and commitment in strengthening the various Divisions to perform above par and contribute to the Group’s bottom-line.”
For the nine month period, the Plantation Division contributed significantly, delivering a profit of RM132 million (2009: RM51 million). During the period, the Division achieved an average palm oil price of RM2,514 per MT, an increase of 16% against last year corresponding period’s average of RM2,172 per MT. The fresh fruit bunches (FFB) production also improved to 837,197 MT.
The Finance & Investment Division achieved strong results, delivering a profit of RM120 million for the nine month period compared with RM30 million for the same period under review last year. There were significant interest savings at Boustead Holdings level and coupled with stronger contributions from the Affin Group as well as the gain on the disposal of BH Insurance, this led to the Division’s role in boosting the Group’s bottom-line.
The Trading Division’s profit for the nine months totaling RM45 million was a two-fold increase over last year’s RM22 million. During the period, all the operating units in the Division had performed well, with a notable increase in contribution from Boustead Petroleum Marketing Sdn Bhd.
The Manufacturing and Services Division closed the nine months with a profit of RM29 million, representing a 45% increase compared with RM20 million for the same period last year. The primary contributor that led to this improved performance was Idaman Pharma Manufacturing Sdn Bhd.
The Heavy Industries Division for the nine month period registered a profit of RM99 million, as compared with last year’s profit of RM113 million. The Division’s naval vessels contracts are beginning to generate income during the reporting period which had helped to cushion to some extent the effect of cost escalations. With the recent Letter of Intent (LOI) received for the construction of six (6) second-generation patrol vessels with combatant Capabilities (Littoral Combatant Ship, LCS), the Division is poised for greater opportunities which will contribute positively to the Group.
The Property Division’s profit of RM49 million for the nine months’ period was 17% lower than last year mainly due to the decline in contribution from property development activity.
“With our current dividend track record, we expect to attract a new segment of discerning investors who will appreciate the value of investing in such a strong dividend yielding stock such as Boustead. More so, with CPO prices trading on the upside, due to adverse weather conditions, thinning supply and increasing demand, we expect CPO prices to continue to maintain if not exceed current levels. With all our Divisions contributing to earnings, we will certainly pursue this course of growing shareholder value,” 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 and manufacturing & services. As at 30 September 2010, Boustead Holdings Berhad’s paid-up capital was RM470 million, while its shareholders’ funds stood at RM4.1 billion. Market capitalisation is currently around RM5 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.
Issued on behalf of: Boustead Holdings Berhad By: acorn communications sdn bhd
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