BCorp slips into the red with RM92.5mil Q3 net loss

PETALING JAYA: Berjaya Corp Bhd (BCorp) suffered a net loss of RM92.5mil in its third quarter ended Jan 31, 2018, compared with a net profit of RM22.89mil in the previous corresponding period, as its retail distribution business recorded lower sales during the period.

In a filing with Bursa Malaysia yesterday, the company said earnings were impacted by lower gross profit margin as a result of more aggressive promotional sales for clearance of slow moving products, as well as unfavourable foreign exchange differences recorded in the current quarter.

Revenue during the quarter meanwhile dropped to RM2.17bil compared with RM2.2bil in the previous corresponding period.

For the nine-month period ended Jan 31, 2018, BCorp suffered a net loss of RM281.88mil compared with net profit of RM136.71mil in the previous corresponding period.

The company said earnings were impacted by provision for impairment on a portion of the balance of the Great Mall of China project sales proceeds, unrealised foreign exchange loss, higher pre-tax loss of the retail distribution business as well as lower pre-tax profit reported by the property investment and development business.

Revenue during the nine-months period dropped to RM6.56bil from RM6.90bil a year earlier.

“The weak consumer spending sentiment as a result of unfavourable economic conditions in China, Malaysia and Hong Kong, as well as the intense competition in Mainland China have caused the retail distribution business to report a lower revenue.

“The property investment and development business registered lower revenue in the current quarter as the remaining units of a property project in China has been disposed of in the previous financial year,” said BCorp.

BCorp said the group’s operating environment will be challenging going forward, given the prevailing economic conditions and global financial outlook.