Boustead Holdings 1Q net profit quadruples
30 May 2017, 10:14 am
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This article first appeared in The Edge Financial Daily on May 30, 2017 - June 5, 2017

KUALA LUMPUR: Boustead Holdings Bhd's first-quarter net profit more than quadrupled to RM40.9 million from RM9.5 million a year ago, on higher contribution across all segments led by its plantation division.

The group posted a profit attributable to ordinary equity holders of the parent for the fourth straight quarter, registering RM4.2 million or 0.21 sen per share in the three months ended March 31, 2017 (1QFY17), compared to a net loss of RM21.5 million or 1.31 sen loss per share in 1QFY16.

Quarterly revenue jumped 27.9% to RM2.38 billion from RM1.86 billion in 1QFY16.

It also declared a first interim dividend of 2.5 sen per share for the financial year ending Dec 31, 2017 (FY17), payable on June 23.

In a filing with Bursa Malaysia yesterday, Boustead said its plantation division’s revenue rose 38% year-on-year (y-o-y), driven by higher palm product prices and improved crop production.

Average crude palm oil price was RM3,166 per tonne in 1QFY17, a 40% y-o-y increase from RM2,267 per tonne. Fresh fruit bunch production rose 13% to 209,526 tonnes due to improved yields as crops recovered from the impact of El Nino.

Similarly, its trading and industrial division saw revenue rise 45% y-o-y on higher fuel price. Revenue for the heavy industries division was also up 29% on the back of higher revenue for littoral combat ships and ship repair projects, while the pharmaceutical division’s revenue rose 11% on improved demands from government hospitals under concession business and growth in private sector business and Indonesia operation.

Going forward, Boustead said it anticipated 2017 to be a challenging year in both domestic and international fronts, as the presence of new and prevailing downside risks would continue to dominate the global economy.

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