Boustead pre-tax profit and turnover for nine months surge

  • Business
  • Tuesday, 30 Nov 2004

BOUSTEAD HOLDINGS BHD delivered a sterling performance for the nine months ended Sept 30, with pre-tax profit of RM207mil, up 47% from the corresponding period last year. Turnover increased to RM930mil from RM771mil previously. 

The company said in a statement yesterday that for the third quarter the group's pre-tax profit was RM75mil on a turnover of RM360mil. The figures compare with pre-tax profit and turnover of RM59mil and RM298mil in the year-ago period. 

The largest profit generator was the plantation division, which contributed RM76.8mil or 37% of total group pre-tax profit for the nine-month period, followed by the property division, which generated pre-tax profit of RM75.4mil on a turnover of RM236mil. 

The finance and investment division showed the biggest turnaround, posting pre-tax profit of RM38.5mil. 

“This was a marked difference from the deficit of RM12mil sustained by the division for the corresponding period in 2003,” the statement said. 

The division’s performance was bolstered by strong showing by Affin Bank, which registered pre-tax profit of RM153.2mil against RM4.2mil in the previous corresponding period. 

“This was due to far better management of loan recoveries and significantly reduced non-performing loans,” the statement said. 

The manufacturing division contributed pre-tax profit of RM15.8mil, or up 14%, for the period under review, mainly due to stronger contribution from associates. 

An interim dividend of 10% has been declared, bringing the total dividend to 20% or RM41.6mil (2003: RM7.4mil). 

Group managing director Tan Sri Lodin Wok Kamaruddin said:” It has always been our strategy to improve earnings potential of our divisions and we have channelled a great deal of resources to the two core growth contributors, which are plantation and property.'' 

The group’s listed vehicle, Boustead Properties Bhd, posted a pre-tax profit of RM100mil for the nine months ended Sept 30, on a turnover of RM260mil. The figures compare with RM73mil and RM145mil respectively for the previous corresponding period. 

“Mutiara Damansara and Mutiara Rini continue to garner strong appeal for the primary and secondary markets in their respective areas.  

“Our strategy to invest in locations that provide high yield such as these two areas is the foundation of growth for Boustead Properties,” Lodin said.  

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