KUALA LUMPUR, February 28, 2023 – Boustead Holdings Berhad (BHB) posted a consolidated profit after tax of RM129 million for the financial year ended 31 December 2022. Profit before tax (PBT) stood at RM446 million while revenue increased to RM15.1 billion.
The Group’s bottom line was primarily impacted by impairment at the Pharmaceutical Division by Pharmaniaga Berhad (Pharmaniaga), mainly arising from the writedown of slow-moving COVID-19 vaccine inventories amounting to RM552 million, in adherence with the requirements of the Malaysian Financial Reporting Standards (MFRS), namely MFRS 102 – Inventories. As a result, for BHB’s fourth quarter ended 31 December 2022, the Group registered a loss of RM676 million.
Izaddeen Daud, Group Chief Executive Officer, Boustead Holdings Berhad, said, “It is indeed deeply concerning that Pharmaniaga has had to take on this significant impairment. Nevertheless, we are confident that Pharmaniaga remains a going concern and is well-poised to tap on the strong prospects of the pharmaceutical sector, domestically and regionally. We are supporting the management team to ensure a robust regularisation plan is in place to strengthen the company’s balance sheet and progressively work towards the upliftment of the PN17 status.”
The Plantation Division was the strongest contributor to the Group for the financial year, with a PBT of RM729 million compared with RM345 million in the previous year. This was largely attributable to the gain realised on disposal of plantation lands amounting to RM459 million. The Division posted a reduced operating profit of RM295 million as a result of lower fresh fruit bunch production, higher operating cost and unfavourable fair value movement of biological assets.
The Trading, Finance & Investment Division turned in a higher PBT of RM428 million compared with RM192 million last year. Boustead Petroleum Marketing was a key contributor on the back of improved sales volume and increased average fuel prices. The Division also saw a higher share of results from AFFIN Bank Berhad, which benefitted from a gain on the divestment of Affin Hwang Asset Management Berhad.
The Heavy Industries Division registered a loss of RM164 million. This was attributable to lower contributions from both shipbuilding and ship repair activities, as well as the impact of an allowance for expected credit losses of RM28 million.
Meanwhile, the Property & Industrial Division registered a higher PBT of RM30 million, arising primarily from the sale of industrial lands in Bukit Raja and land held for development on Jalan Cochrane. As the nation transitioned to the endemic phase of the pandemic, the hotel segment also recorded a better operational performance due to increased F&B sales and higher occupancy and average room rates. However, the Industrial segment posted a lower profit due to higher material and maintenance costs.
“Despite the challenges to our Pharmaceutical Division, we are encouraged by the fact that most of our other Divisions recorded positive results for the financial year under review. This was driven by our dedicated focus to our Reinventing Boustead Strategy and we will continue to build on this to leverage opportunities to drive the sustainable growth of our core businesses, alongside unlocking value creation for the future,” concluded Izaddeen.
Reflecting Boustead’s commitment to enhancing value for shareholders, BHB had declared on 29 December 2022 a first interim dividend of 1.5 sen per share. This will be paid on 27 March 2023 to shareholders on the register as at 28 February 2023.
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 December 2022, Boustead Holdings Berhad’s paid-up capital was RM2.7 billion while its shareholders’ funds stood at RM3.3 billion. Market capitalisation is in the region of RM1.3 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 firstname.lastname@example.org.
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.