Boustead narrows net loss in 2Q after all divisions improved


BOUSTEAD Holdings Bhd has narrowed its net loss to RM7.3 million for its second quarter ended June 30, 2021 (2Q21), from a net loss of RM73.7 million last year, due to improvement in all divisions and recognition of a one-off gain on disposal of an investment property of RM13.1 million.
Revenue grew 72% to RM2.58 billion from RM1.5 billion in the corresponding quarter last year, also supported by a higher share of results from associates and joint ventures, according to an exchange filing today.

Ebitda recorded a significant improvement of 109% to RM209.1 million.

The group achieved a profit before taxation and zakat (PBT) of RM81.2 million from a loss before taxation and zakat (LBT) of RM57.4 million in the previous corresponding quarter last year.

Boustead group MD Datuk Seri Mohammed Shazalli Ramly said substantial challenges and uncertainties posed by the ongoing Covid-19 pandemic had decelerated the implementation of various initiatives under the group’s reinventing strategy.

“Despite these challenges, I am pleased that the group started the new fiscal year by delivering a healthy quarter with a return to the black after six consecutive quarters of losses.

“For 2Q21, our robust financial performance continued the momentum to reflect our ongoing commitment to the ‘Reinventing Boustead’ strategy of setting the group on a stronger footing,” he said in a statement today.

For the cumulative six months period, the group achieved a turnaround with a PBT of RM202.5 million compared with LBT of RM110.7 million last year as all divisions performed better, particularly plantation and trading; and finance and investment.

During the period, the pharmaceutical division also did well with a higher revenue of RM2 billion, mainly attributable to the sales of the Sinovac Covid-19 vaccine to the government and strong demand from the concession business.

The bottom line was also bolstered by one-off gains on the disposal of a hotel, Royale Chulan Bukit Bintang and an investment property of RM84.6 million and RM13.1 million, respectively.

Mohammed Shazalli said the conglomerate — involved in the plantation; pharmaceutical; trading, finance and investment; property and industry; and heavy industries — is enhancing its performance through digital technologies, renewable energy and Internet of Things, among others, to achieve sustainability.

Boustead, the investment arm of Lembaga Tabung Angkatan Tentera, aims to accelerate value creation with performance improvement programmes, tap into new revenue sources, rationalise non-strategic assets and venture into the technology sector and digital

Boustead shares slipped 3.2% to 60 sen at the close of trading today, valuing the company RM1.22 billion.