KEY HIGHLIGHTS

  • Profit Before Taxation and Zakat surged to RM760.7 million
  • Profit After Taxation and Zakat registered at RM479.2 million
  • Revenue increased to RM11.3 billion

 

KUALA LUMPUR, 28 FEBRUARY 2022 – Boustead Holdings Berhad (Boustead) accelerates its strategies into various innovative high technology and digital initiatives, synergising with its existing strengths, resources and core businesses as the Group records improved performance in the financial year ended 31 December 2021 (FY2021).

The steady financial results have given the boost for the Group to continue its performance programme and explore ventures into Economic, Social and Governance (ESG) led initiatives, blockchain technology and renewable energy including solar farming and algae based biofuel which are taking solid shape with established international partners, that will create a new sustainable economic infrastructure and employment.

For FY2021, the Group posted a Profit Before Taxation and Zakat (PBT) of RM760.7 million as compared to Loss Before Taxation and Zakat (LBT) of RM420.3 million in the financial year ended 31 December 2020 (FY2020). All divisions, particularly Plantation, Pharmaceutical and Trading, Finance & Investment delivered stronger performance in FY2021. The bottom line was further bolstered by one-off gains on disposal of properties totalling RM103.9 million as well as lower impairments of assets.

Profit After Taxation and Zakat (PAT) stood at RM479.2 million compared to a Loss After Taxation and Zakat (LAT) of RM500.7 million for FY2020. The Group posted a net profit of RM170.1 million in contrast to a net loss recorded at RM550.9 million for the corresponding period last year after the allocation to non-controlling interests and perpetual sukuk holders. Furthermore, the Group rebounded with a stronger operational performance, attaining Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) which more than doubled at RM1.34 billion against RM585.4 million which was recorded for FY2020.

Revenue for FY2021 increased to RM11.3 billion from RM7.9 billion as the Group benefited mainly from higher palm product prices, better sales of pharmaceutical products and improvement in fuel prices.

For the fourth quarter (Q4 FY2021) ended 31 December 2021, the Group achieved a significant turnaround with a PBT of RM318.3 million as compared to LBT of RM295.3 million in the previous corresponding quarter (Q4 FY2020).

The Group also achieved PAT at RM201.9 million against a LAT of RM324 million in the same quarter of FY2020. Meanwhile, net profit stood at RM78.6 million compared to net loss of RM352.3 million in the previous corresponding quarter.

EBITDA grew at 113% to RM481.5 million from RM225.9 million in Q4 FY2020, attributable to better results from operations. Moreover, the Group’s revenue in Q4 FY2021 also increased to RM3.0 billion from RM2.2 billion during the corresponding quarter of the previous financial year.

The overall significantly improved results in Q4 FY2021 were driven by better contributions and improved performance in all divisions within the Group, as well as higher share of results from associates.

Segmental performance results for each Division are as follows:

Plantation Division

  • For FY2021, the Plantation Division registered a three-fold jump in PBT to RM344.8 million from RM83.3 million in FY2020 which is attributed to improved palm product prices. However, Fresh Fruit Bunches (FFB) production was lower by 8% at 923,471 metric tonnes (MT) against the recorded 1,001,557 MT for the corresponding period last year. The oil extraction rate for FY2021 saw maintained performance at 21.2% in contrast to 21.1% recorded for FY2020. Nonetheless, the kernel extraction rate was lower at 4.1% (FY2020: 4.3%).
  • For FY2021, the Plantation Division recorded a higher revenue of RM1.1 billion in contrast to a revenue of RM763.0 million for FY2020, which is an increase by 38% due to significantly better palm product prices.

Pharmaceutical Division

  • The Pharmaceutical Division recorded a significantly higher PBT of RM271.0 million for FY2021 in contrast to a PBT of RM29.8 million posted for FY2020 due to an increased revenue from the sales of COVID-19 vaccines.
  • For FY2021, the Division achieved a significant jump in revenue to RM4.8 billion from RM2.7 billion in FY2020 which is mainly due to strong demand from across the Division’s concession, non-concession and Indonesian businesses, with sales of Sinovac COVID-19 Vaccine to MOH and private sector as the key driver.

Trading, Finance & Investment Division

  • For FY2021, the Trading, Finance & Investment Division achieved a turnaround with a PBT of RM192.3 million which is a significant improvement compared to a recorded LBT of RM82.8 million in FY2020. The profits were driven by stockholding gain (FY2020: stockholding loss) 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, and this is attributed to improved net interest income, Islamic Bank income, net fee and commission income, lower modification loss and allowance for impairment losses.
  • For FY2021, the Trading, Finance & Investment Division registered a higher revenue of RM4.4 billion which is a marked increase of 38% against the corresponding period a year ago, which was mainly driven by revenue from BPM on higher average fuel prices as mentioned above.

Property & Industrial Division

  • For FY2021, the Property & Industrial Division posted a lower LBT of RM7.1 million in contrast to a LBT of RM343.2 million for FY2020 mainly due to the one-off gains on disposal of properties and better results from the industrial segment.
  • At the operational level, the property development and investment segments recorded better contribution for FY2021 compared to the previous year’s performance. The hotel segment incurred losses as revenue was still affected by lower occupancy rates.
  • The industrial segment closed FY2021 with stronger results in contrast to FY2020.
  • The Property & Industrial Division registered a revenue of RM625.2 million for FY2021 which is a slight increase of 4% from RM602.9 million recorded in the corresponding period last year. The improved revenue was driven by the sale of an industrial land in Bukit Raja, Klang under the property development segment as well as higher export revenue from UAC Berhad.
  • The property investment’s segment revenue for FY2021 was affected by lower occupancy and rental rate at shopping malls, while the hotel segment also faced lower occupancy rates as mentioned above.

Heavy Industries Division

  • For FY2021, the Heavy Industries Division closed the year with a lower LBT of RM40.3 million compared to a LBT of RM107.4 million for FY2020, which is mainly due to better contribution from the Littoral Mission Ship (LMS) project.
  • The Heavy Industries Division posted a lower revenue of RM373.7 million against a revenue of RM575.2 million recorded in FY2020, which was primarily due to the variation in milestones for the Littoral Combat Ship (LCS) projects. However, the impact was cushioned by the revenue of the LMS projects from the delivery of LMS 3 and LMS 4 in FY2021.

Boustead Group Managing Director Dato’ Sri Mohammed Shazalli Ramly said the improved performance in the FY2021 results came from continuous business growth and the Group’s excellent operational outcome.

“Despite extreme challenges caused by the prolonged COVID-19 pandemic, we are proud to have made significant progress in implementing our strategic priorities as part of the Reinventing Boustead strategy and this is reflected in our strong twelve months financial results. We attribute this to the diligent and dedicated hard work from our talents and management team, and we will further enhance our performance improvement programme and rejuvenation initiatives to raise the company on a more sustainable and solid footing over the next two years,” he said.

Dato’ Sri Mohammed Shazalli said the decision to embrace ESG values as pillars of the Group’s reinvention strategy will drive many of the Group’s immediate and future initiatives.

“Several innovative businesses have also taken shape, such as our involvement in the breakthrough A-MAP technology in algae farming with Next Generation Oil Group. Our recent extended venture into the fabrication and manufacturing of Algae Tank Farm (ATF) further confirms this determination. Our interest in blockchain technologies will support our future ventures in ESG initiatives that will democratise the traditional way of wealth ownership for everyone, while we strive to provide improved quality of life for retired soldiers through employment scheme of Boustead Green Army.

“The strong financial results we have achieved is a clear indication that we are on the right path to enhance our business prospects and maximise the returns to our main stakeholders – the military contributors of Lembaga Tabung Angkatan Tentera,” he said.

Commenting on the encouraging results, Boustead Chairman Datuk Seri Mohd Redzuan Md Yusof who assumed the Group’s leadership early this year said, “I am pleased with the improved performance and congratulate the Management and everyone who worked hard and contributed towards the success.

“We will endeavour for the following quarters to be conducted successfully whilst staying focused in implementing all the agreed business plans and strategies to ensure continuous momentum of steady performance, as well as sustainable growth,” he said.

 

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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 RM3.3 billion. Market capitalisation is currently 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 Corporate Communications Department at gcom@boustead.com.my.