Nirvana Asia posts jump in adjusted profit


PETALING JAYA: Integrated death-care service provider Nirvana Asia Ltd posted a 28.5% jump in adjusted profit attributable to the owners of the company to US$44.6mil (RM165.3mil) for its financial year ended Dec 31, 2014.

The Hong Kong stock exchange-listed company said it had recorded solid growth in both contract sales and revenue, which increased 13.2% and 18.2% to US$206.7mil (RM766.4mil) and US$165.1mil (RM612.1mil) respectively from a year earlier.

In terms of geography, Nirvana Asia said that revenue from Malaysia increased by 21.7% to US$140.6mil (RM521.3mil) accounting for 85.2% of the group’s total revenue.

“The increase was primarily driven by revenue contribution from the newly-acquired cemeteries in Bukit Mertajam and an increase in sales from the Penang island columbarium facilities,” it said in a statement yesterday.

Nirvana Asia offers its services through nine cemeteries in Malaysia, one in Indonesia, 10 columbarium facilities in Malaysia and one each in Singapore and Indonesia as well as two funeral homes in Malaysia.

As a pre-need market for death-care services pioneer in Asia, it said its pre-need segment contributed 81.6% to total revenue and grew 21.3% to US$134.7mil (RM499.4mil) in 2014.

Its as-need revenue recorded 5.8% growth to US$30.4mil (RM112.7mil), accounting for 18.4% of total revenue. “The increase in revenue was primarily driven by sales of burial services from Bukit Mertajam, Kulai, Semenyih and Penang,” it said.

Nirvana Asia said the death-care services market in Malaysia, Singapore and Indonesia would remain bullish due to the potential of the untapped pre-need markets.

It said that upon just a 1% increase in penetration rate, it would generate US$373.7mil (RM1.4bil), US$113mil (RM418.7mil) and US$368.4mil (RM1.4bil) of pre-need revenue in Malaysia, Singapore, and Indonesia respectively.


   

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