KUALA LUMPUR, 16 JUNE 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 towards a sustainable future led by Environmental, Social and Governance (ESG) principles.
The Group has adopted and executed the change with robust digital transformation, accelerated talent redevelopment and performance improvement programmes through a sense of repentance, or seeing the world through a new mental model, by embracing a holistic approach in its sustainability aspirations with a re-engineering of its corporate DNA to Boustead Hijau (BIJAU).
BIJAU is the Group’s agenda to drive ESG values into all strategies and decision-makings for the business going forward and is the core value driver in all dealings and operations including partnerships into digitalisation, digital technologies and renewable energy (RE), while expanding and improving existing businesses, capitalising on emerging opportunities and accelerating value creation to maximise returns for the shareholder.
BIJAU is supported by three pillars – the refreshed EDGE20 Transformation Programme to enhance efficiencies and improve governance across the Group’s core businesses; exploration of new business opportunities into emerging high-growth areas such as green and digital technologies; and strengthening the Group financially by divestment of non-core businesses, improving capital structure and corporate restructuring.
Boustead Group Managing Director, Dato’ Sri Mohammed Shazalli Ramly said the Group has witnessed significant and noteworthy successes with the acceleration of key initiatives led by the three supporting pillars of BIJAU.
“Our efforts in digitalisation by way of collaboration with digital start-ups to develop digitalbased ventures has seen us expand upon Boustead Digital Services (BDS) by entering into a subscription and shareholders’ agreement with MyAngkasa Digital Services Sdn Bhd as well as the purchase of an equity stake in Proficient Software Solution Berhad that provides cutting edge project management software.
“BDS has also purchased an equity stake in BrioHR Pte Ltd, a Human Resources (HR) Technology start-up for HR management. Meanwhile, BDS’ partnership with The Hive Southeast Asia and Aimcloud Sdn Bhd will see a co-creation of activities within Boustead’s ecosystem, including the Tanky App that serves as an all-in-one energy storage application with a fully automated fuel claim system and cash flow management, integrating with digital payment solution and fuel sharing functionality for general consumers.
“Our initiative into jobs creation for retired Armed Forces personnel in the plantations sector, while reducing harvesters’ shortage faced by Boustead Plantations Berhad, is strengthened via the launch of the Boustead Green Army employment programme. Moreover, we have also recently embarked explorations into an EV APP charging platform which is a solution that looks into accelerating the rollout of electric vehicle (EV) charging stations throughout the country,” he added.
Dato’ Sri Mohammed Shazalli said that enhancing the Group’s growth further, Boustead Technology Sdn Bhd (BOUSTECH) has galvanised its commitment to support the Government’s ambition of increasing renewable energy generation and achieve net zero carbon emissions by 2050.
“By partnering with start-ups and other players at the cutting edge of innovation, we have signed multiple Memorandums of Understanding (MoUs) and Documents of Understanding (DoUs) with technology innovators such as Indah Morib Resources and BoomGrow to address food security and deliver a sustainable food value chain from farming.
“Furthermore, our foray into RE sees a partnership with Next Generation Oil Group (NGOG) to cultivate micro algae for sustainable biofuel. We also partnered with Sinohydro Bureau 9 Co Ltd International Co to explore the development of land-based solar farms, as well as venturing into floating solar photovoltaic (PV) projects, rooftop solar, solar battery storage solutions and the development of waste-to-energy plants,” he said.
Touching on the third pillar supporting BIJAU, Dato’ Sri Mohammed Shazalli said that the rationalising of non-strategic assets will streamline operations while paring down borrowings. “The strategic sales of Royale Chulan Bukit Bintang hotel and Boustead Cruise Centre were followed by the disposal of a piece of land along Jalan Cochrane. As a result of our debt reduction and strategic sales initiatives, we have managed to reduce our gearing to 1.28 times in 2021 from 1.48 times in the previous year.”
Boustead’s profitable performance for Financial Year 2021 (FY2021) saw significant improvement with Profit Before Taxation and Zakat (PBT) of RM760.7 million as compared to Loss Before Taxation and Zakat (LBT) of RM420.3 million in Financial Year 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.
In his message, Boustead Chairman Dato’ Seri Mohd Redzuan Md Yusof said, ” We are excited with the outlook for the Group as we have strong business fundamentals based upon the successfully implemented strategies and initiatives. The Group has also returned to the black in the financial year 2021 after three consecutive full years of losses. Each ensuing quarter saw the Group steadily grow more fiscally robust while enjoying significantly improved gearing at the same time.
“The Group is currently engaged with multiple international and local investors who seek to partner with Boustead by investing in the Group as well as its myriad of BIJAU-led projects. The board and the management will continue to oversee the implementation of the Reinventing Boustead initiatives,” he said.
Boustead thanked the shareholders for the positive reception and continued support. At the Annual General Meeting (AGM), the shareholders have approved all the ordinary resolutions proposed.
-END-
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”) 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 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.