KUALA LUMPUR (June 6): Johor Corporation Group (JCorp) said its profit after tax (PAT) more than doubled to RM808 million for the financial year ended Dec 31, 2022 (FY2022), from RM379 million a year earlier, on the back of strong performance across its business segments.

Revenue rose 12% to RM5.7 billion, with the agribusiness segment’s revenue reaching RM1.85 billion, a 13% increase compared with FY2021, as a result of high crude palm oil and palm kernel prices.

The wellness and healthcare segment also experienced considerable growth with revenue increasing by 13%, thanks to an uptick in inpatient activity, which grew by 50%, and outpatient activity, which grew by 19%.

This segment’s results were also supplemented by improved medical tourism revenue, added JCorp in a statement.

"The real estate and infrastructure segment demonstrated remarkable resilience, reinforcing its growth potential through the sale of industrial lands and residential properties. The segment is currently undertaking a comprehensive restructuring exercise geared towards unlocking potential and optimising returns," the group added.

JCorp's food and restaurants segment, however, recorded a RM31 million loss primarily due to ongoing restructuring of the segment aimed at streamlining operations.

“This strategic transformation is anticipated to enhance the segment's future performance and drive profitability. It is also important to note that this division, along with the industry, faced significant challenges stemming from supply chain disruptions, which had a detrimental impact on both top-line and bottom-line results,” said the group.

JCorp also registered a "paramount achievement in the group's history" with its net assets increasing by 7% from FY2021 to RM10.5 billion.

“We are pleased that the JCorp 3.0 Reinvention Plan has culminated in the successful results that we have achieved in FY2022. This is only the beginning as we have become a leaner organisation with a sharpened focus on performance that will drive impactful results,” said JCorp president and chief executive officer Datuk Syed Mohamed Syed Ibrahim.

He said the group’s performance was driven by a successful corporate restructuring plan, coupled with its asset rationalisation and financial restructuring efforts that also carried a positive impact.

“The group will continue to place emphasis on environmental, social, and governance considerations. In fact, we recently developed our sustainability framework and established a Board of Sustainability Committee. We have set our target and we are committed to achieving our goal of net zero by 2050,” added Syed Mohamed.

JCorp recently received an AAA/Stable rating by RAM Ratings for its proposed second tranche RM2 billion Islamic Medium-Term Notes (IMTN) Programme. "Simultaneously, RAM Ratings reaffirmed JCorp’s AAA/Stable/P1 corporate credit ratings and the AAA/Stable rating of its RM3.5 billion IMTN Programme," the group noted.