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Berjaya Corporation 1Q16 Net Profit Leaps More Than 6 Fold
Malaysia Daily Bulletin | 30 September 2015
By:
  • Berjaya Corporation registered a 14.1 percent decline in 1Q16 revenue to RM2.1 billion mainly due to the full effect of deconsolidation of Berjaya Auto. However, earnings surged more than six fold to RM56.1 million.
  • The group’s bottom line was boosted primarily by a higher share of results from associates under its subsidiaries, a RM15 million disposal gain of a subsidiary, as well as gain on the remeasurement of its equity interest in REDtone International.
  • Commenting on business segments, the firm noted that its motor distribution division recorded a lower pre-tax profit mainly due to the deconsolidation of Berjaya Auto, while the retail distribution business posted a pre-tax profit against a pre-tax loss in 1Q15 due to significant reduction in operating costs through aggressively closing down non-performing stores.
  • The company’s restaurants and cafes business also contributed a higher pre-tax mainly due to the full effect of consolidating Berjaya Starbucks. However, the property investment and development business, hotels, resorts and gaming businesses recorded lower pre-tax profits.

Significance: Despite the higher earnings, Berjaya Corporation noted that its operating performance will be challenging for the remaining quarters of FY16 given the current economic outlook and the weakening Malaysian ringgit.


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