Deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin said the improved results is testament that the company
KUALA LUMPUR: Boustead Holdings Bhd recorded RM40.9mil in profit after tax for the first quarter, a substantial jump from RM9.5mil in the previous year’s corresponding quarter.
The group attributed the increase in profits to better contribution from its plantation, finance and investment, and trading and industrial divisions.
Its revenue for the quarter was also up 28% to RM2.38bil.
Revenue from the plantation division was up by 38%, driven by buoyant palm product prices and better FFB production.
Similarly, the group said, revenue from the trading and industrial division was higher by 45% against previous year mainly due to increase in fuel price.
Revenue for the Heavy Industries Division, meanwhile, was up by 29% on the back of higher revenue for LCS and ship repair projects.
In its prospects, the group said it anticipates 2017 to be a challenging year, in both domestic and international fronts, as the presence of new and prevailing downside risks will continue to dominate the global economy.
It said this includes future changes in US policies, uncertainties over the length and outcome of Brexit negotiation between UK and EU as well as other geopolitical risks.
“On the domestic front, volatility of major commodity prices and slower domestic demand may impede growth.
“Nevertheless, prospects will continue to be positive as the Malaysian economy is well supported by the underlying strong economic fundamentals, sound financial system, accommodative monetary policy as well as the implementation of various government initiatives, it said.
It added that the diversified nature of the group’s business in six segments of the Malaysian economy would augur well for the group.
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