Berjaya Corp posts RM92m net loss for 3Q18

By IZZAT RATNA / Graphic By TMR

Berjaya Corp Bhd reported RM92 million net loss for the third quarter ended Jan 31, 2018 (3Q18), compared to a net profit of RM22.87 million a year ago, weighed down by lower revenues from property investment, and consumer products and services.

The company, which is controlled by tycoon Tan Sri Vincent Tan, saw its revenue declining to RM2.17 billion in the quarter compared to RM2.2 billion recorded in the same period a year ago.

The company told Bursa Malaysia last week that the lower earnings were due to the lower revenue from the property investment and business development segment compared to a year ago.

The group’s marketing of consumer products and services segment reported lower revenue as the retail distribution business was affected by weak consumer sentiment and intense competition in the local and overseas markets.

The restaurants and cafes segment also saw lower revenue contribution due to the closure of certain non-performing restaurants in the current financial period.

The property investment and business development segment registered lower revenue in the current quarter, underpinned by reduced contribution from the group’s foreign projects as well as lower progress billings in the current quarter.

However, the hotels and resorts segment reported a higher revenue contribution, supported by increased overall occupancy.

For the nine-month period, Berjaya registered a revenue of RM6.56 billion and a net loss of RM281 million compared to a revenue of RM6.9 billion and RM136.7 million reported in the previous year.

Berjaya said given the prevailing economic conditions and global financial outlook, the directors believe that the group’s operating environment is expected to remain challenging going forward.

Recently, Berjaya announced that its wholly owned subsidiary, Berjaya Group Bhd, incorporated a wholly owned subsidiary on March 20, 2018, namely Beam Team Sdn Bhd with a cash subscription of RM1.

Additionally, Berjaya, together with other shareholders of DSG Holdings Ltd such as Earthlodge Investments Ltd and Elque Resources Sdn Bhd, entered into a share purchase agreement with Besino Environment Ltd on March 6, 2018, for the proposed disposal of a total of 100% equity interest in DSG.

The entire equity interest in DSG comprises 10 million ordinary shares for a total cash consideration of approximately RM312.93 million, of which Berjaya will be disposing of its entire investment of 85% equity interest or 8.5 million DSG shares for RM265.99 million.

Berjaya’s share price closed at RM0.32 last Friday with a market capitalisation of RM1.56 billion.