BOUSTEAD PROFIT SURGES TO RM38M

Improved contributions from finance, pharmaceutical and heavy industries divisions

BOUSTEAD Holdings Bhd’s net profit surged 46 per cent to RM38 million in the first quarter ended March 31 this year from RM26 million a year ago.

Pre-tax profit jumped to RM70.3 million while revenue came in at RM2.2 billion. The company has declared an interim dividend of 2.5 sen payable on July 4.

Boustead deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin said this was achieved amid a tough start to the year with a number of its divisions being affected with rough economic environment.

“Leveraging our strengths as a diversified group, the finance and investment, pharmaceutical and heavy industries divisions delivered improved results.

“We are confident that our multiple streams of businesses will see us through as the economy picks up due to renewed positive sentiment,” said Lodin.

The finance and investment division was the biggest contributor to Boustead with a profit of RM31 million, up from RM21 million in the previous year. This was achieved on the back of a stronger contribution from the Affin group as well as a lower deficit by a joint venture.

Boustead’s trading and industrial division turned in a profit of RM28 million, marginally lower than RM29 million previously.

Boustead Petroleum Marketing Sdn Bhd recorded improved operating margins and sales volume, but this was offset by reduced contribution from UAC Bhd due to lower revenue.

The pharmaceutical division posted a RM24 million profit, slightly higher than RM23 million a year ago.

The plantation division recorded a lower profit of RM8 million compared with RM42 million recorded in the corresponding quarter last year. This was due to lower prices for palm products.

Average crude palm oil price was RM2,491 per tonne, a 21 per cent drop from RM3,166 per tonne in the same period last year.

Fresh fruit bunches production was higher at 226,323 million tonnes, due to improved yields post-El Nino.

The property division recorded a deficit of RM8 million compared with a deficit of RM7 million previously, while the heavy industries division had a deficit of RM12 million.