Forget Password?
  1. Indices
  2. Commodities
  3. Currencies
Straits Times 3,183.26 -22.20 -0.69%
Hang Seng 27,657.24 -130.37 -0.47%
Dow Jones 25,877.33 +197.43 +0.77%
Shanghai Composite 2,905.97 +35.36 +1.23%
Berjaya Corporation 1Q16 Net Profit Leaps More Than 6 Fold
Malaysia Daily Bulletin | 30 September 2015
  • 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.

Join The Conversation
The Shares Investment editorial team welcomes constructive feedback on our coverage and content. We would also be delighted to answer any questions on the above article. Leave us a comment below, and we'll get back to you shortly!

All Rights Reserved. Pioneers & Leaders (Publishers) Pte Ltd. Best viewed with Mozilla Firefox 3.5 and above.