BCorp posts higher earnings in Q2

PETALING JAYA: Conglomerate Berjaya Corp Bhd (BCorp), which saw its net profit surge 44.3% to RM176.5mil in the second quarter ended Oct 31, 2016, expects the operating environment to be challenging, going forward.

“Given the prevailing economic conditions and global financial outlook, the directors are of the view that the group’s operating environment will be very challenging, going forward,” it said in the notes accompanying its financial results.

In the second quarter, BCorp posted a net profit of RM176.5mil compared with RM122.2mil a year ago, mainly due to a higher contribution from the property investment and development business segment.

Revenue for the quarter rose to RM2.45bil against RM2.25bil in the same period last year. Its earnings per share (EPS) for the period was higher at 3.27 sen compared with 2.47 sen a year ago.

BCorp attributed the higher revenue for the financial period under review mainly due to a higher contribution from the property investment and development business segment.

The company said the marketing of consumer products and services segment reported lower revenue, as the retail distribution business was affected by unfavourable economic conditions in the Greater China Markets and the closure of non-performing stores.

However, BCorp said the quantum of decrease was mitigated by a improved revenue reported by the motor distribution business under H.R. Owen PLC as the result of a higher sales volume of new cars, coupled with certain new models being available for sale during the quarter under review.

Furthermore, BCorp said the restaurant and cafe business also reported higher revenue for the current quarter mainly due to the improved sales recorded by existing cafes, as well as additional cafes operating in the current quarter.

The hotels and resorts business reported a higher revenue mainly due to higher overall room rates, in spite of a drop in overall occupancy rates.

The gaming operations operated by Sports Toto Malaysia Sdn Bhd, the principal subsidiary of Berjaya Sports Toto Bhd, reported lower revenue in the current quarter as a result of the lower cumulative jackpot in the 4D Jackpot game.

In the first six months to Oct 31, 2016, BCorp posted a net profit of RM113.8mil, or 2.21 sen in EPS, down 36% from RM178.3mil, or an EPS of 3.67 sen, previously.