KUALA LUMPUR, May 25, 2015 – Boustead Holdings Berhad (Boustead) registered a profit after tax of RM43 million for its first quarter ended 31 March 2015. Profit before tax (PBT) for the Group came in at RM70 million on the back of a turnover of RM1.9 billion for the quarter under review. Net assets per share was RM5.66 as at 31 March 2015.

In line with the Group’s dividend policy and its commitment to delivering shareholder value, the Board declared a first interim dividend of 5 sen per share for the financial year ending 31 December 2015. The dividend will be paid on 30 June 2015 to shareholders on the register as at 17 June 2015.

YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad, said, “This has indeed been a challenging period. External pressures and a general ‘wait-and-see’ mood in the consumer market is definitely bearing down on the Group’s earnings.”

“However, as we have pointed out before, it is times like this whereby the diversified nature of the Group’s businesses is indeed beneficial for a conglomerate such as ours, given that we have multiple earning streams. A good case in point is how the Pharmaceutical Division has played a key role in contributing to the Group’s bottom line. We are confident that we will be able to weather the challenges that lie ahead, while ensuring that shareholders benefit from our commitment in terms of dividend yield.”

The Pharmaceutical Division was a key contributor to the Group with a PBT of RM33 million. This was mainly due to higher margins as a result of improved operational efficiencies and lower manufacturing costs.

The Property Division registered a PBT of RM10 million, an increase from the same period last year, on the back of higher progress billings.

The Heavy Industries Division delivered a profit of RM4 million, an improvement compared with a deficit in the previous year’s corresponding quarter. This was achieved via improved profitability from Joint Venture Companies, while MHS Aviation Berhad also contributed positively towards the Division’s results.

Meanwhile, the Trading and Industrial Division recorded a lower PBT of RM13 million for the current period, with declining volume and fuel prices putting pressure on revenue.

The Plantation Division reported a PBT of RM8 million, down from the same quarter last year. This was largely due to weaker crude palm oil prices which averaged at RM2,236 per metric tonne (MT), a 15% drop compared with the previous year’s corresponding period. Fresh fruit bunches production for the quarter under review was 211,674 MT, impacted by adverse cyclical crop patterns.

The Finance and Investment Division registered a lower profit of RM3 million for the quarter under review, mainly due to weaker contributions from the AFFIN Group, which was impacted by higher allowance for loan impairment as a result of a one-off provisioning attributable to the commercial banking arm.

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 2015, Boustead Holdings Berhad’s paid-up share capital was RM517 million while its shareholders’ funds stood at RM5.9 billion. Market capitalisation is currently in excess of RM4.5 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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