Boustead records 1Q net loss of RM62.80mil

KUALA LUMPUR: Boustead Holdings Bhd (BHB) registered a net loss of RM62.80 million for the first quarter ended March 31, 2023 (1Q FY2023), from a net profit of RM290.30 million in the same period last year.

Revenue decreased marginally to RM3.24 billion from RM3.44 billion previously, as only the trading, finance and investment division registered a higher revenue.

In a filing with Bursa Malaysia, BHB said the group recorded a loss before taxation and zakat (LBT) of RM15.9 million as compared to profit before taxation and zakat (PBT) of RM683.1 million posted in 1Q FY2022.

It said the shortfall was mainly due to a one-off gain achieved in 1Q FY2022 for the disposal of plantation assets and weaker operational results due to the decrease in palm product prices and unfavourable impact on the valuation of fresh fruit bunches.

"The plantation division registered a lower PBT of RM13.5 million from RM509.5 million previously, mainly due to a one-off gain on disposal of plantation assets of RM364.1 million recognised in 1Q FY2022,” it said.

BHB said its pharmaceutical division posted a reduced PBT of RM9.3 million from RM36.9 million previously, as revenue was affected by lower customer demand in both concession and Indonesian segments.

On prospects, the group said it is optimistic that the gradual return of foreign workers, together with the progress of its Plantation Performance Improvement Programs, the relaxation of regulations for foreign workers and its Reinventing Boustead strategy that emphasises mechanisation and digitalisation, will improve yields, and can partially offset the impact of lower crude palm oil prices and rising costs.

BHB said the pharmaceutical division is poised to penetrate the Indonesian market further and reinforce its position as a leading healthcare provider in the region.

"In order to exit from the PN 17 status, the division, together with its principal adviser, is working on the regularisation plan to improve the shareholders’ equity of Pharmaniaga Bhd.

"It is targeted that the PN17 issue will be settled by the 1Q 2024,” it said.

In a separate statement filed with the exchange, BHB said the Ministry of Finance (Incorporated) has the intention to acquire 20.8 per cent of Boustead Heavy Industries Corp Bhd’s (BHIC) entire equity interest in Boustead Naval Shipyard Sdn Bhd, held via its wholly owned subsidiary, Perstim Industries Sdn Bhd.

"The terms of the proposed acquisition are subject to negotiations between the parties,” it added. - Bernama

Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Boustead Holdings , PN17 , Plantation


Next In Business News

Wall St set for slight rebound with focus on Fed speakers, economic data
Govt should institute bolder tax reforms to meet deficit target
Ringgit ends slightly higher tracking the positive equity market
Chin Hin triggers MGO after raising stake in Ajiya
ITMAX wins RM111.2mil smart city contract in Johor
PETRONAS, MOL and MISC to jointly develop LCO2 carriers for CCS projects
FBM KLCI snaps losing streak, up 2.02 points
Asian FX range-bound; Indian rupee rises on JPMorgan index inclusion
BOJ keeps ultra-loose policy, dovish guidance on outlook
Bank Negara international reserves amount to US$111.5bil as at Sept 15, 2023

Others Also Read