Remains Focused on Strengthening Resilience
KUALA LUMPUR, May 29, 2023 – For the first quarter ended 31 March 2023, Boustead Holdings Berhad (BHB) recorded a revenue of RM3.2 billion. Nevertheless, the Group’s bottom line was impacted by weaker contributions from its Divisions. This resulted in a loss after tax of RM43 million for the quarter under review.
Izaddeen Daud, Group Chief Executive Officer, Boustead Holdings Berhad, said, “Despite current challenges, the fact that we continued to drive revenue generation is testament to the viability of the Group’s diversified core businesses. We will continue to build on this to strengthen our resilience and unlock value moving forward. In tandem, we are focused on prudent cost management to enhance operational efficiencies and achieve better profit margins.”
The Trading, Finance & Investment Division was the strongest contributor to the Group for the quarter under review, with a profit before tax (PBT) of RM31 million. This was lower than the previous year’s corresponding quarter, primarily due to a decrease in stockholding gain recorded by Boustead Petroleum Marketing on the back of lower average fuel prices. Nevertheless, Affin Bank Berhad recorded a better performance arising from a higher writeback of impairment losses and an increase in net income.
The Plantation Division posted a PBT of RM14 million, compared with RM510 million in the same quarter last year which benefitted from a one-off gain on disposal of plantation lands amounting to RM364 million. Lower palm product prices also impacted the Division and negatively affected the valuation of fresh fruit bunches.
The Pharmaceutical Division turned in a reduced PBT of RM9 million. This was mainly attributable to lower demand from customers in both the concession and Indonesian segments.
The Heavy Industries Division incurred a loss before tax (LBT) of RM48 million, arising from lower contributions from its ship repair segment and higher unrealised foreign exchange loss.
Meanwhile, the Property & Industrial Division posted a LBT of RM22 million, compared with a PBT of RM39 million achieved in the same quarter last year which was boosted by the sale of industrial land. In the quarter under review, the property development segment recorded lower progress billing for ongoing projects in Mutiara Rini Johor and Mutiara Hills Semenyih, while the industrial segment was impacted by higher input cost which offset its higher revenue. However, the hotel segment turned in a better performance due to improved average room rates and occupancy.
“We will continue to tap into opportunities to accelerate value creation. This includes implementation of performance improvement programmes to strengthen our core businesses, alongside exploring new revenue streams and streamlining non-strategic assets to drive the sustainable long-term growth of the Group,” concluded Izaddeen.
About Boustead Holdings Berhad
Boustead Holdings Berhad (“Boustead”) is one of Malaysia’s oldest conglomerates with Lembaga Tabung Angkatan Tentera (“LTAT”) as its majority shareholder. The diversified Group comprises more than 90 subsidiaries, associate companies and joint ventures, and has substantial interests in various sectors of the Malaysian economy.
Its operations are focused in five key areas namely plantation, heavy industries, property & industrial, trading, finance & investment, and pharmaceutical.
Since its inception as a modest trading entity more than 190 years ago, the Boustead Group has grown by leaps and bounds. As at 31 March 2023, Boustead Holdings Berhad’s paid-up capital was RM2.7 billion while its shareholders’ funds stood at RM3.2 billion. Market capitalisation is in the region of RM1.7 billion. For more information on Boustead, log on to www.boustead.com.my.
For more details, please contact Boustead’s Group Engagement & Communications Department at gcom@boustead.com.my.
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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