Ber­jaya Corp reg­is­ters RM2.19b rev­enue in Q2

The Sun (Malaysia) - - SUNBIZ -

PE­TAL­ING JAYA: Ber­jaya Corp (BCorp) Bhd re­ported an 11.1% de­cline in rev­enue to RM2.19 bil­lion for the sec­ond quar­ter ended Oct 31, 2017 against RM2.46 bil­lion in the pre­vi­ous cor­re­spond­ing pe­riod, mainly due to lower rev­enue re­ported by the re­tail dis­tri­bu­tion and mo­tor dis­tri­bu­tion busi­nesses as well as the prop­erty in­vest­ment and de­vel­op­ment seg­ment.

It swung to a net loss of RM145.99 mil­lion from a net profit of RM176.51 mil­lion in the same quar­ter a year ago, mainly dragged by the pro­vi­sion for the im­pair­ment of a por­tion of the bal­ance sales pro­ceeds from the sale of the Great Mall of China project as well as the loss aris­ing from the par­tial dis­posal of an as­so­ciate company.

The con­glom­er­ate said in a fil­ing with the stock ex­change that the re­tail dis­tri­bu­tion busi­ness was af­fected by the weak con­sumer sen­ti­ment cou­pled with the in­tense com­pe­ti­tion in the lo­cal and over­seas mar­kets.

The mo­tor dis­tri­bu­tion busi­ness un­der H.R. Owen PLC also re­ported lower rev­enue due to the soft­en­ing de­mand in the UK car mar­ket as well as the prod­uct life cy­cle of the car mod­els avail­able for sale.

Mean­while, the lower con­tri­bu­tion from the prop­erty in­vest­ment and de­vel­op­ment busi­ness was due to a much-re­duced con­tri­bu­tion from the group’s for­eign projects in the cur­rent quar­ter.

How­ever, BCorp noted that the re­duced rev­enue from the re­tail dis­tri­bu­tion and mo­tor dis­tri­bu­tion busi­nesses was mit­i­gated by higher rev­enue recorded by other seg­ments.

“The group recorded higher rev­enue from the ho­tels and re­sorts busi­ness, mainly due to higher over­all oc­cu­pancy and av­er­age room rates, while the higher rev­enue from the restau­rants and cafes busi­ness was mainly due to ad­di­tional cafes op­er­at­ing in the cur­rent quar­ter. The gam­ing op­er­a­tions also recorded higher rev­enue in both Malaysia and Viet­nam.”

For the first half of the year, BCorp’s top line was down by 6.4% from RM4.68 bil­lion to RM4.38 bil­lion, with a net loss of RM189.38 mil­lion ver­sus a net profit of RM113.83 mil­lion in the same pe­riod last year.

Given the pre­vail­ing eco­nomic con­di­tions and global fi­nan­cial out­look, BCorp di­rec­tors are of the view that the group’s op­er­at­ing en­vi­ron­ment will be chal­leng­ing go­ing for­ward.

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