Boustead’s 3Q20 net loss narrows to RM52m


BOUSTEAD Holdings Bhd narrowed its net loss to RM51.8 million in the third quarter ended Sept 30, 2020 (3Q20), versus a net loss of RM155 million it made in the corresponding period last year, which was affected by the impairment of property, plant and equipment, and goodwill amounting to RM161.3 million.

Loss per share for the quarter stood at 2.56 sen.

The group’s quarterly revenue declined 30.77% year-on-year (YoY) to RM1.89 billion due to weaker performance by all segments, exacerbated by the negative effects of Covid-19 pandemic.

“Without a doubt, the current environment is expected to remain challenging. We are strongly focused on progressing our Transformation Plan to put the group on a stronger footing over the next three years, to move forward as a high-performing, sustainable and resilient organisation,” said chairman Datuk Seri Mohamed Khaled Nordin (picture) in a statement yesterday.

For the cumulative nine-month period (9M20), Boustead’s net loss widened to RM198.6 million from a net loss of RM153 million, while revenue period decreased 27.47% YoY to RM5.65 billion.

For the cumulative period, the property and industrial division posted revenue of RM396.7 million, a shortfall of 41% against RM677 million recorded in 9M19.

For 9M20, Boustead’s plantation division recorded higher revenue of RM535.4 million, up 34% YoY, on the back of improved palm products prices and an increase in fresh fruit bunch production for the period.

The heavy industries division closed the period with a lower revenue of RM234.3 million from RM881.5 million in 9M19, mainly due to variation in milestones achieved for littoral combat ship, littoral mission ship and ship repair projects.

For the cumulative period, the pharmaceutical division recorded a revenue of RM2.1 billion, on par with last year, due to strong contribution from non-concession business, mainly from the sale of personal protective equipment in response to the Covid-19 pandemic.

Its trading, finance and investment division registered a revenue of RM2.4 billion in 9M20, a drop of 36% from RM3.7 billion made for the same period a year ago, with the shortfall mainly due to lower average fuel price and sales volume under Boustead Petroleum Marketing (BPM) and the effect of Movement Control Order on tourism-related entities, namely Boustead Cruise Centre and Boustead Travel Services.

Boustead stated it is seeking out opportunities into new business streams to improve its long-term prospects that will put the group in a stronger footing over the next three years.

Boustead closed one sen or 0.8% higher to 63 sen yesterday, giving it a market capitalisation of RM1.28 billion.