Boustead posts net profit of RM358m in H1

Boustead Holdings Bhd has recorded a net profit of RM358 million in the first half ended June 30, 2011, representing a 35
per cent jump compared with RM266 million reported in the corresponding period.

These results were achieved on the back of significantly improved turnover of RM3.8 billion as against RM3 billion for the same period last year.

"We are pleased that there have been consistent and improving results illustrated by our profitability markers on the back of our strong revenue," said Boustead Deputy Chairman and Group Managing Director Tan Sri Datuk Lodin Wok Kamaruddin in a statement today.

"Healthy growth of this nature is a clear validation of our strategy to remain a multifaceted conglomerate with strong lines of businesses," he said, adding that Boustead Group had become a strong dividend yielding stock.


To date, he said, a net dividend of 8.0 sen per share had been paid out.

"Our latest proposal of dividend in specie on the basis of one Pharmaniaga Bhd share for every 57.5 Boustead shares held is equivalent to a 10 sen distribution per share.

"Given our new dividend policy, we will continue improving shareholders' value via consistent dividend payouts," he said.

Boustead's earning per share (EPS) improved significantly as well for the half-year period to 31.6 sen from 25.5 sen for the corresponding period last year.

For the cumulative period, the plantation division led the group’s results, delivering the highest profit of RM173 million compared with the other divisions.

This was achieved due to robust crude palm oil (CPO) prices. The division’s average CPO price for the first half of the year was RM3,441 per metric tonne, an increase of 38 per cent against RM2,495 per in the corresponding period.

Cumulatively, fresh fruit bunch crop was 550,454 metric tonnes. Boustead said there was a further gain of RM95 million from the disposal of plantation assets to Al-Hadharah REIT which was completed during the second quarter.

The manufacturing and trading division’s contribution to the group’s profitability for the first six months of the year was RM56 million compared with RM42 million for the same period last year.

The primary contributing factor to the division was BHPetrol, as a result of improved sales and stockholding gains from this business while the pharmaceutical division delivered a significant profit of RM36 million.

Key factors included stronger sales, improved productivity and better management of margins from Pharmaniaga Bhd which is a key contributor to the division.

Meanwhile, the property division delivered a profit of RM36 million compared with RM31 million for the same period last year.

The driving factor was a result of improved contribution from the property development segment in tandem with the progress of its construction phases.

The finance and investment division was also profitable with the main contributor to the division being AFFIN Holdings Bhd.

However, the heavy industries division recorded a modest loss given that work on the second generation patrol vessels remained at a preliminary stage.

"We are confident that the remaining half of the financial year will see continued organic growth and we hope for all our Divisions to perform well."

"Given the trend for CPO prices, we expect to see further gains from our plantation division as commodity prices remain at healthy levels," said Lodin. -- Bernama