Boustead Holdings sees RM62.8 mil net loss in 1Q on weaker operational results

KUALA LUMPUR: Bhd reported a net loss of RM62.80 million for the first quarter ended March 31, 2023 (1QFY2023), compared with a net profit of RM290.30 million a year earlier, when there was a one-off gain from the disposal of the group's plantation assets.

The loss was also attributed to weaker operational results arising from a decrease in palm product prices and unfavourable impact on the valuation of fresh fruit bunches.

The 1QFY2023 net loss was however 84.39% less than the RM402.30 million net loss reported for 4QFY2022.

Quarterly revenue was down 5.81% year-on-year to RM3.24 billion, from RM3.44 billion in 1QFY2022, according to the group's bourse filing.

The heavy industries division saw its revenue dropping 22.13% to RM28.5 million from RM36.6 million in 1QFY2022, with loss before tax (LBT) widening to RM47.9 million from RM24.3 million due to lower contribution from the ship repair segment and higher unrealised foreign exchange loss.

The plantation division registered a lower profit before tax (PBT) of RM13.5 million from RM509.5 million previously, mainly due to the one-off gain on disposal of plantation assets of RM364.1 million recognised in 1QFY2022.

Revenue from the property & industrial division also declined to RM165.2 million from RM323.8 million in 1QFY2022, with an LBT of RM21.5 million against a PBT of RM38.9 million previously. This was due to lower progress billing for ongoing projects in Mutiara Rini Johor and Mutiara Hills Semenyih, followed by higher input costs from its industrial segment.

On the other hand, the hotel segment recorded better operational profit due to higher average room rates and occupancy.

Group chief executive officer Izaddeen Daud said Holdings will continue to build on its diversified core business to strengthen its resilience in moving forward.

“In tandem, we are focused on prudent cost management to enhance operational efficiencies and achieve better profit margins,” he said in a statement.

“We will continue to tap into opportunities to accelerate value creation.”

It included the implementation of performance improvement programmes to strengthen its core business, exploring new revenue streams and streamlining non-strategic assets for sustainable long-term growth, he added.

Boustead Holdings shares closed unchanged at 85.5 sen on Monday (May 29), valuing the group at RM1.72 billion.

Source : The Edge Markets

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