KUALA LUMPUR (May 31): Boustead Holdings Bhd returned to the black on a year-on-year basis with a net profit of RM43.1 million in the first quarter ended March 31, 2021 (1QFY21) versus a net loss of RM73.1 million a year earlier.
It posted earnings per share of 2.13 sen compared with loss per share of 3.6 sen previously, its filing with Bursa Malaysia today showed.
Boustead rebounded with a stronger operational performance, achieving higher earnings before interest, tax, depreciation, and amortisation of RM274.2 million.
The group also staged a turnaround with a profit before taxation and zakat of RM121.3 million, compared with a loss before taxation and zakat of RM53.3 million in last year's corresponding period.
"The better performance delivered by major operating units in 1QFY21 was bolstered by a one-off gain on disposal of a hotel, Royale Chulan Bukit Bintang, of RM84.6 million," it said.
Quarterly revenue, meanwhile, fell 7.7% to RM2.09 billion from RM2.26 billion in the previous year on lower revenues recorded by its property, heavy industries, pharmaceutical, and investment divisions.
Its property and industrial division registered a 23% decrease in revenue to RM129 million from RM166.6 million in 1QFY20, caused by lower progress billing for a project in Mutiara Rini, Johor.
Its heavy industries division posted a lower revenue of RM61.3 million from RM86.2 primarily due to variation in milestones achieved for LCS, LMS and ship repair projects.
The company's pharmaceutical division recorded a lower revenue of RM793.5 million from RM819.9 million in the previous year, mainly attributable to reduced demand from the Indonesian business.
As Malaysia rolls out its Covid-19 vaccination campaign, Boustead said the prospect of recovery has improved with an expectation for the economy and labour market to recover.
"The group's diversified operations mainly in the essential services, will continue to bolster the group's durability in bracing the impact of the pandemic.
"The group will also continue with the efforts to seek new opportunities to strengthen its performance. This is in line with the Reinventing Boustead strategy, of which the group is focusing on performance improvement programme and new value creation within the group's existing core businesses, creatively changing business models for new revenue sources, venturing into the digital services and technology sector, focusing on talent development, and rationalising non-strategic assets," it added.
Boustead rose three sen or 5.13% to close at 61.5 sen, translating into a market capitalisation of RM1.24 billion.