BOUSTEAD POSTS RM86M H1 PROFIT
Plantation division remains key contributor to company’s earnings
THE plantation division remains the key contributor to Boustead Holdings Bhd in the first half of the year, posting a profit of RM86 million.
While the earnings were lower than the previous year’s, which was mainly due to the gains realised on disposal of a land, operating profit was higher as a result of increased palm product prices, improved crop production and lower finance cost.
The company said average crude palm oil price for the first half of the year was RM2,969 per tonne, up by 22 per cent from the corresponding period a year earlier.
Fresh fruit bunches (FFB) production improved by 10 per cent to 440,075 tonnes, largely due to improvement in yields post-El Nino.
On earnings, the company’s net profit in the second quarter ended June 30 plummeted 73.74 per cent to RM59.30 million, from RM225.80 million a year ago.
Boustead Holdings deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin said amid a tough economic climate, the group continued to deliver sustained results.
“This is indeed testament to our resilient nature and our diversified core business streams, which have enabled the group to push forward and maintain the momentum,” he said.
Boustead’s revenue in the second quarter jumped 15.46 per cent to RM2.39 billion, from RM2.07 billion a year ago, due to higher revenue in plantation and heavy industries divisions, according to an exchange filing on Wednesday.
The group also declared a second interim dividend of three sen per share for the financial year ending December 31, payable on September 28, to shareholders on the register as at September 18.
Moving forward, the group expects the second half of this year to be challenging, both globally and domestically.
“On the domestic front, volatile commodity prices and slower domestic demand may impede growth.
“Despite this tough backdrop, long-term prospects are positive for the Malaysian economy, which is supported by strong economic fundamentals, a sound financial system, an accommodative monetary policy as well as the implementation of various government initiatives. As such, the diversified nature of our six core areas of the Malaysian economy certainly augurs well for us,” it said.