JCorp's net profit surges to RM808mil in FY22

Johor Corporation president and CEO Datuk Syed Mohamed Syed Ibrahim

PETALING JAYA: Johor Corp Group (JCorp) saw its profit after tax (PAT) jump by over 100% to RM808mil for its fiscal year ended Dec 31 2022 (FY22), from the RM379mil it posted for the preceding financial year.

The development institution for the state of Johor said the significant surge in PAT was achieved on the back of a 12% increase in group revenue, which rose to RM5.7bil, while attributing the strong showing to positive performances across its business segments.

In a statement, JCorp said the agribusiness segment’s revenue reached RM1.85bil, marking a 13% increase compared with FY21, as a result of high crude palm oil and palm kernel prices.

“The wellness and healthcare segment also experienced considerable growth, with revenue increasing by 13% compared with the previous year.

“A significant uptick in inpatient and outpatient activities, growing by 50% and 19% respectively, contributed to this success. Furthermore, improved medical tourism revenue also played a vital role in boosting the segment’s results.”

On top of that, the group said its real estate and infrastructure segment was also resilient, reinforcing its growth potential through the sale of industrial lands and residential properties.

JCorp revealed that the division is currently undertaking a comprehensive restructuring exercise geared towards unlocking potential and optimising returns.

On the other hand, the group’s food and restaurants segment recorded a RM31mil loss primarily due to ongoing restructuring of this business segment aimed at streamlining operations.

“This strategic transformation is anticipated to enhance the segment's future performance and drive profitability. It is also important to note that this division, along with the industry, faced significant challenges stemming from supply chain disruptions, which had a detrimental impact on both top-line and bottom-line results,” said the group.

JCorp also saw net assets increase by 7% for FY22 compared with the previous financial year, reaching RM10.5bil.

JCorp president and chief executive Datuk Syed Mohamed Syed Ibrahim said he was pleased that the group’s JCorp 3.0 Reinvention Plan had culminated in the successful results in FY2022.

“Our remarkable performance for FY2022 has been driven by a very successful corporate restructuring plan. Coupled with this, our asset rationalisation and financial restructuring efforts have also had a positive impact.

“These fundamental initiatives have propelled our value-creation agenda, delivering operational efficiencies and igniting innovation, thereby enhancing our competencies. Our readiness to adapt to market trends and confront challenges head-on has elevated our resilience considerably,” he noted.

Moreover, Syed Mohamed said JCorp will continue to place emphasis on environmental, social and governance considerations, having recently developed its sustainability framework and establishing a board of sustainability committee.

He reiterated JCorp’s commitment to achieving “net zero” by 2050.

“Our mission and purpose of forming our wealth creation and wealth distribution mission is sacrosanct as we navigate to future-proof JCorp.

“The evident progress we have made demonstrates our ability to thrive, as we overcome negative push factors and disrupt the norm. Moving forward, we will continue in our journey to reset and reimagine JCorp to be resilient, agile and sustainable.”

The group also recently received a AAA/Stable rating by RAM Ratings for its proposed second tranche RM2bil Islamic Medium-Term Notes (Sukuk Wakalah) Programme, with the rating agency also reaffirming JCorp's AAA/Stable/P1 corporate credit ratings and the AAA/Stable rating of its RM3.5bil IMTN Programme.

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