Big jump in profit for Boustead
Group’s plantations division delivers good year-on-year growth
PETALING JAYA: Boustead Holdings Bhd recorded RM40.9mil in profit after tax for the first quarter, a substantial jump from RM9.5mil in the previous year’s corresponding quarter mainly supported by its plantation business.
The plantations-to-financial services conglomerate also saw its revenue increase to RM2.37bil against 1.86bil in the corresponding quarter last year.
Boustead declared a first interim dividend of 2.5 sen per share for the financial year ending Dec 31, 2017. The company said the diversified businesses helped the performance.
“Our plantations division led the way delivering good year-on-year growth, followed by our trading and industrial division.
“We are conscious that there are tough market conditions ahead regionally and internationally, which will definitely have an impact on local sentiments.
“Nevertheless, our six divisions are focused on tightening operational efficiencies and enhancing organic growth with a view to deliver on the bottom line,” said deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin in a statement.
The plantation division was the biggest contributor, delivering a profit of RM57mil, up from RM44mil in the previous year’s corresponding quarter.
This was primarily attributable to higher palm product prices and improved crop production.
Average crude palm oil price was RM3,166 per tonne, a 40% increase from the same period last year.
Fresh fruit bunches production rose by 13% to 209,526 tonnes, due to improved yields as crops recovered from the impact of El Nino.
The trading and industrial division posted a higher profit of RM29mil compared with RM19mil in last year’s corresponding quarter.
This was mainly due to stronger contributions from BHPetrol and UAC Bhd.
The pharmaceutical division registered an improved profit of RM23mil from RM22mil in the same quarter last year, on the back of increased contribution from both the concession business and private sector business, as well as reduced finance costs.
The finance and investment division recorded a profit of RM21mil, up from RM13mil in the same period last year, as a result of lower net finance cost on the back of reduced borrowings and placement of surplus funds from the proceeds of the rights issue.
The division also saw a higher contribution from Affin Holdings, mainly due to better other operating income, Islamic banking income and net interest income.
The property division recorded a deficit of RM7mil compared with a profit of RM11mil in the same quarter last year, mainly due to startup costs for the recently opened MyTOWN Shopping Centre.
Meanwhile, the heavy industries division posted a loss of RM51mil, an improvement compared with the loss of RM73mil in last year’s corresponding quarter.