Boustead Delivers Increased PAT of 88% for Q4 Cumulative PAT 50% higher than FY2009

KUALA LUMPUR, February 25, 2011 – Boustead Holdings Berhad (Boustead) recorded a solid performance for the final quarter of the financial year ended 31 December 2010 supported by strong contribution across all its Divisions. The Group delivered a significantly improved profit after tax of RM235 million for the quarter under review compared with the preceding quarter’s profit of RM125 million marking an 88% increase between quarter three and quarter four of this financial year.

Cumulatively for the 12 month period, the Group recorded a profit after tax of RM625 million compared with RM418 million for its previous fiscal year which denotes a 50% increase on a year-on-year basis. Revenue grew by an impressive 15% to RM6.2 billion for the current financial year compared with RM5.4 billion for the previous financial year.

The Group recorded a profit before tax of RM252 million for its current quarter under review compared with RM208 million for the preceding year’s corresponding quarter. To complement this, the Group saw an impressive 45% increase in profit before tax to RM726 million for the full year compared with RM502 million for the same period last year.

Earnings per share for the quarter under review increased to 22.2 sen compared with 9.8 sen for the preceding quarter.

As a result of the Group’s sterling performance, Boustead will pay a net dividend of 39 sen for its financial year ended 31 December 2010. The total dividend of RM367 million (2009: RM184 million) represents a payout ratio of 68%.

To date, dividends totalling 27 sen have been paid while the remaining 12 sen will be paid on 31 March 2011 to shareholders on the register as at 21 March 2011.

YBhg Tan Sri Dato’ Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad, said, “It has certainly been a significant year for the Group as our short and long term strategic plans, together with a concerted effort in achieving our goals, have resulted in our superior financial performance for this financial year.”

“As we look forward, prospects for the Group remain strong especially with commodity prices remaining robust. Additionally, the banking and finance sector is expected to continue to perform well in the coming financial year. More importantly, contributions from Pharmaniaga Berhad will have a positive impact on our bottom line in the coming year.”

For the 12 month period, the Plantation Division remained a solid contributor to the Group’s earnings by registering an improved profit of RM183 million compared with the RM76 million recorded in the previous fiscal year. This substantial increase was primarily due to crude palm oil prices which were favourable to the Group due to thinning stock levels and adverse weather conditions. The average CPO price realised was RM2,622 per MT, an increase of 21% over last year’s average of RM2,170 per MT.

The Finance and Investment Division was another firm contributor recording strong growth in profit due to the increased earnings experienced across all business segments of Affin Holdings Berhad. The Division register a profit of RM138 million, a significant jump from the RM95 million registered in the previous year. The disposal of BH Insurance was also a key contributor having garnered positive cash flow and a profit of RM75 million.

The Property Division recorded an increased profit of RM139 million as compared with RM106 million registered in the previous year. The Division’s signature developments, Mutiara Damansara, Selangor and Mutiara Rini, Johor are currently seeing solid appreciation levels in the secondary market and this should augur well for any new launches planned for the coming year.

The Heavy Industries Division maintained its performance despite being in an industry that suffered due to market conditions. The Division registered a profit of RM146 million, as compared with the previous year’s profit of RM145 million. With the recent Letter of Intent for the proposed award of a fleet of six second-generation patrol vessels with combatant capabilities, the Division is looking forward to undertake this new project.

The Trading Division registered a profit of RM77 million, a significant increase from the RM47 million recorded in the previous year while the Manufacturing & Services Division recorded a profit of RM44 million, an increase from the previous year’s profit of RM32 million. During the year under review, Boustead Petroleum Marketing Sdn Bhd and Idaman Pharma Manufacturing Sdn Bhd performed above expectations for the Trading and Manufacturing & Services Division respectively.

“Improving shareholder value has borne much fruit, reflective of our results this financial year. Our strong dividend payment consistently over the last four quarters is a further testament of the Group’s desire to reward its shareholders. Effective financial year 2011, we will be introducing a dividend policy which formalises our commitment to achieve a minimum payout ratio of 70% of our adjusted consolidated net profit which should make Boustead a more attractive investment for discerning investors.” 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 100 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 31 December 2010, Boustead Holdings Berhad’s paid-up capital was RM470 million, while its shareholders’ funds stood at RM4.2 billion. Market capitalisation is currently in excess of 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.

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