KEY HIGHLIGHTS

  • Profit Before Taxation and Zakat stood at RM683.1 million
  • Profit After Taxation and Zakat registered at RM559.6 million
  • Net profit posted at RM290.3 million

 

KUALA LUMPUR, 27 MAY 2022 – Boustead Holdings Berhad’s (Boustead) revamped business plans and strategies to embark into digital and high technology initiatives, as well as rejuvenation of its core businesses continued to yield results as the Group recorded positive performance for the first financial quarter ended 31 March 2022 (Q1FY2022).

During the quarter, the Group posted a higher Profit Before Taxation and Zakat (PBT) of RM683.1 million as compared with PBT of RM121.3 million in the corresponding quarter of the previous year (Q1FY2021). Profit After Taxation and Zakat (PAT) stood at RM559.6 million against PAT of RM87.4 million in Q1FY2021.

The Group’s net profit notably increased to RM290.3 million, from RM43.1 million recorded in Q1FY2021 after the allocation to non-controlling interests and perpetual sukuk holders. The attained Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) stood at RM794.4 million against RM274.2 million recorded during Q1FY2021, while the revenue for the quarter was also higher at RM3.4 billion from RM2.1 billion achieved in the same period last year.

The overall positive results were mainly attributed to a one-off gain from the disposal of plantation land of RM364.1 million, as well as continued robust performance by almost all the divisions. The bottom line was further bolstered by higher share of results from an associate.

Segmental performance results for each Division are as follows:

Plantation Division

  • During the quarter, the Plantation Division registered a significantly higher PBT of RM509.5 million in contrast to a PBT of RM19.3 million in Q1FY2021 which is attributable to a one-off gain on disposal of plantation land.
  • At the operational level, the Division recorded a higher profit from operations of RM151.2 million (Q1FY2021: profit from operations of RM33.4 million) which was driven by higher palm product prices as well as fresh fruit bunches (FFB) production, with FFB standing at 195,882 metric tonnes (MT) of production which was a 9% increase from 180,165 MT recorded in Q1FY2021.
  • The oil and kernel extraction rates for the period also saw a slight increase at 20.6% (Q1FY2021: oil extraction rate of 20.3%) and 4.1% (Q1FY2021: kernel extraction rate of 4.0%) respectively.
  • For Q1FY2022, the Plantation Division recorded a higher revenue of RM324.2 million (Q1FY2021: revenue of RM171.9 million) which is an increase by 89% on the back of higher palm product prices and improved FFB production, as mentioned above.

Trading, Finance & Investment Division

  • For Q1FY2022, the Trading, Finance & Investment Division’s recorded a PBT that more than doubled to RM122.1 million from RM47.3 million recorded in Q1FY2021, with profits mainly driven by a higher stockholding gain as compared to the same period last year by Boustead Petroleum Marketing (BPM) on the back of higher average fuel prices.
  • The bottom line also benefitted from better contribution by associate Affin Bank Berhad which was attributed to improved net interest income, Islamic Banking income, net fee and commission income as well as allowance for impairment losses.
  • During the period of Q1FY2022 the Division registered a commendable revenue of RM1.79 billion which is a significant increase of 92% in contrast to Q1FY2021 and was mainly driven by revenue from BPM on higher average fuel prices as mentioned above as well as increased sales volume.

Property & Industrial Division

  • In Q1FY2022, the Property & Industrial Division posted a lower PBT of RM38.9 million (Q1FY2021: PBT of RM63.0 million) and revenue of RM323.8 million which more than doubled from RM129.0 million recorded in Q1FY2021. During the same period last year, the Division had benefitted from a one-off gain on disposal of a hotel of RM77.1 million. At the operational level, in Q1FY2022, the property development and hotel segments recorded better contribution mainly due to the sale of industrial lands in Bukit Raja, Klang and improved room revenues from better occupancy rates respectively.
  • Meanwhile, the property investment segment posted higher losses due to higher share of loss from a joint venture and lower shopping mall rental rate, whereas the industrial segment closed the period with a higher profit due to better revenue.
  • The property investment’s segment revenue was affected by lower shopping mall rental rate as mentioned earlier. The industrial segment recorded higher revenue attributable to the revision of selling prices.

Pharmaceutical Division

  • During the period of Q1FY2022, the Pharmaceutical Division recorded a higher PBT of RM36.9 million (Q1FY2021: PBT of RM30.0 million) which was mainly driven by higher revenue.
  • The Division achieved a higher revenue of RM962.2 million for Q1FY2022 compared with RM793.5 million in Q1FY2021 which was mainly due to positive growth across the Group’s concession and Indonesian businesses as a result of strong demand from customers.

Heavy Industries Division

  • The Heavy Industries Division closed the period of Q1FY2022 with a lower LBT of RM24.3 million against a LBT of RM38.3 million posted in Q1FY2021 which was mainly due to better contribution from submarines’ maintenance, repair and overhaul (MRO) activities.
  • The Division posted a lower revenue of RM36.6 million in contrast to a revenue of RM61.3 million posted in Q1FY2021 which was primarily due to the variation in milestones for Littoral Mission Ship (LMS) projects. However, the impact was cushioned by the improved revenue from MRO activities for submarine contracts, as mentioned above.

Boustead Group Managing Director Dato’ Sri Mohammed Shazalli Ramly said the Group’s encouraging results bore testimony to the continuous efforts by the whole organisation to improve operational performance that accelerated business growth and profitability.

“As the nation moves towards a recovery period while still withstanding the challenges related to the prolonged COVID-19 pandemic, the Group continues to remain cautious with the current uncertainty of the global market and political climate, especially with the on-going Ukraine-Russia conflict. Nevertheless, we have placed provisional measures to safeguard the businesses while we continue to be optimistic of our prospects moving forward.

“Meanwhile, the Group has set in motion several ventures, including collaboration with Kuwait-based international investment company Al Hajri Global Group (Al Hajri), as they seek to explore investment opportunities with Boustead which include businesses related to oil and gas, medical, construction, housing development and finance sectors, all of which fits perfectly with our Boustead Hijau (BIJAU) agenda,” he added.

Boustead Chairman Datuk Seri Mohd Redzuan Md Yusof said, “I am pleased with the outcome of this quarter’s commendable financial results and whilst remaining optimistic, the Group is as vigilant as ever in protecting business growth with best practices.

“The Group’s performance for this quarter is a good incentive for us to accelerate prospects into new ventures related to Economic, Social and Governance (ESG) based initiatives, blockchain technology and renewable energy in partnership with established international partners to become a progressive energy and solutions provider while enriching lives, providing employment as well as achieve better performance and beyond for our shareholders,” he concluded.

 

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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.

About Boustead Holdings Berhad

Boustead Holdings Berhad (“Boustead”), one of Malaysia’s oldest conglomerates, is Lembaga Tabung Angkatan Tentera (“LTAT”)’s investment arm. 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 December 2021, Boustead Holdings Berhad’s paid-up capital was RM2.7 billion while its shareholders’ funds stood at RM3.6 billion. Market capitalisation is currently in the region of RM1.6 billion. For more information on Boustead, log on to www.boustead.com.my.

For more details, please contact Boustead’s Group Engagement & Experience Department at gee@boustead.com.my.