Boustead Delivers Improved Q1 Results

KUALA LUMPUR, May 31, 2018 – Boustead Holdings Berhad (BHB) delivered an improved performance for its first quarter ended 31 March 2018, with a profit after tax of RM38 million, up by 46% from RM26 million in the same quarter last year. Profit before tax jumped to RM70.3 million while revenue came in at RM2.2 billion.

As a result of the Group’s strong performance and in line with its commitment to enhancing shareholder value, the Board declared a first interim dividend of 2.5 sen per share for the financial year ending 31 December 2018. The dividend will be paid on 4 July 2018 to shareholders on the register as at 18 June 2018.

YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad, said, “Admittedly, it has been a tough start to the year and a number of our Divisions were impacted. Leveraging on our strengths as a diversified Group, the Finance & Investment, Pharmaceutical and Heavy Industries Divisions delivered improved results. We are confident that our multiple streams of businesses will see us through as the economy picks up due to renewed positive sentiment.”

The Finance & Investment Division was the biggest contributor to the Group for the quarter under review, posting a profit of RM31 million, up from RM21 million in the same quarter last year. This was achieved on the back of a stronger contribution from the Affin Group as well as a lower deficit by a joint venture.

The Trading & Industrial Division turned in a profit of RM28 million, marginally lower than RM29 million in the previous year’s corresponding quarter. While Boustead Petroleum Marketing Sdn Bhd recorded improved operating margins and sales volume, this was offset by a reduced contribution from UAC Berhad as a result of lower revenue.

The Pharmaceutical Division registered a profit of RM24 million, slightly higher than the RM23 million registered in the same quarter last year. This was largely as a result of an increased contribution from the private sector business as well as continuous cost optimisation measures, although this was moderated by a lower contribution from the Indonesia segment.

The Plantation Division recorded a lower profit of RM8 million compared with RM42 million in last year’s corresponding quarter. This was primarily attributable to lower prices for palm products which impacted the bottom line. Average crude palm oil price was RM2,491 per metric tonne (MT), a 21% drop from RM3,166 per MT in the same period last year. Fresh fruit bunches production was higher at 226,323 MT, due to improved yields post El Nino.

Meanwhile, the Property Division registered a deficit of RM8 million compared with a deficit of RM7 million in the previous year’s corresponding quarter. Whilst the Division recorded a lower net finance cost and a reduction in share of loss from its joint venture, Boustead Ikano, this was offset by weaker results from the hotel segment.

The Heavy Industries Division recorded a deficit of RM12 million, an improvement from a deficit of RM51 million in the same quarter last year. This was mainly due to better contributions from Boustead Heavy Industries Corporation Berhad and Boustead Naval Shipyard. MHS Aviation also recorded a lower deficit.

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 2018, Boustead Holdings Berhad’s paid-up capital was RM2.7 billion while its shareholders’ funds stood at RM6.1 billion. Market capitalisation is currently in the region of RM4.9 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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