Boustead’s Q3 net profit soars

> Up over sev­en­fold to RM44m, most di­vi­sions post bet­ter re­sults

The Sun (Malaysia) - - SUNBIZ -

PE­TAL­ING JAYA: Boustead Hold­ings Bhd’s net profit in the third quar­ter ended Sept 30, 2016 jumped over sev­en­fold to RM44 mil­lion from RM6 mil­lion in the same pe­riod last year, thanks to lower op­er­at­ing and fi­nance costs.

Rev­enue, how­ever, slipped to RM2.02 bil­lion from RM2.12 bil­lion in the pre­vi­ous cor­re­spond­ing quar­ter.

Boustead has pro­posed to de­clare a third in­terim div­i­dend of 5 sen per share.

“De­spite per­sist­ing global eco­nomic head­winds, we are pleased to note that most of our di­vi­sions recorded im­proved re­sults,” its deputy chair­man and group man­ag­ing di­rec­tor Tan Sri Lodin Wok Ka­marud­din said in a state­ment yes­ter­day.

“This is tes­ta­ment to the fact that our strat­egy to stream­line our core busi­nesses con­tin­ues to bear fruit. The pick-up in crude palm oil prices also con­trib­uted to our stronger earn­ings,” he added.

How­ever, he said the group prop­erty di­vi­sion was im­pacted by a weaker per­for­mance from the ho­tel seg­ment as well as un­re­alised for­eign ex­change loss.

“We will con­tinue to un­der­take mea­sures to strengthen our busi­ness di­vi­sions and en­hance core com­pe­ten­cies on an op­er­a­tional level, in or­der to de­liver share­holder value.”

While the re­main­der of the year is ex­pected to be chal­leng­ing, both glob­ally and do­mes­ti­cally, Boustead be­lieves the prospects will con­tinue to be positive as the coun­try’s fun­da­men­tals re­main strong.

“The di­ver­si­fied na­ture of the group’s busi­ness in six seg­ments of the Malaysian econ­omy would augur well for the group,” it said.

For the nine-month pe­riod, the group posted a net profit of RM248.3 mil­lion, 27 times higher than the RM9 mil­lion a year ago, on the back of gains re­alised on the dis­posal of its stake in Jen­dela Hik­mat Sdn Bhd amount­ing to RM198 mil­lion, as well as the sale of non-core plan­ta­tion land.

Rev­enue fell 4.3% to RM5.95 bil­lion, from RM6.22 bil­lion be­fore.

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