Update Boustead 2Q profit up, declares 7.5 sen dividend

Update Boustead 2Q profit up, declares 7.5 sen dividend
Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Wednesday, 21 August 2013 13:41

KUALA LUMPUR (Aug 21): BOUSTEAD HOLDINGS BHD [] announced that it recorded a profit after tax (PAT) of RM75 million for its second quarter ended June 30, a 33% year-on-year increase.

Net profit was RM61.2 million, up 40% from RM43.7 million. This was achieved on the back of a flattish revenue of RM2.4 billion.

Consequently, its board of directors have declared a single-tier dividend of 7.5 sen per share for the year ending Dec 31, 2013, whose entitlement date fall on Sept 13 and payable on Sept 30.

In a press statement, Boustead said for the six month period, the group’s PAT stood at RM209 million, on the back of a revenue of RM4.9 billion.

For the second quarter under review, earnings per share (EPS) were 5.9 sen while net assets per share stood at RM4.52.

Reviewing its half year results, the company said its property division was the biggest contributor to the group, delivering a profit before tax (PBT) of RM77 million for the six month period, marking a 38% increase compared with last year’s RM56 million.

Its heavy industries division was able to record a PBT of RM29 million for the cumulative period compared with a loss of RM33 million last year.

The pharmaceutical division reported a PBT of RM32 million in the first half of the financial year, a drop compared with last year’s corresponding period mainly due to reduced sales from concession business, provision for doubtful debts and drop in production.

Its PLANTATION [] division recorded a lower PBT of RM16 million for the six month period as it was once more affected by falling crude palm oil (CPO) prices.

At the same time, lower fresh fruit bunches crop production also had an impact on the division.

Boustead’s finance & investment division posted a PBT of RM49 million for the half year period consistent with the same period last year, due to contributions from the Affin Group and Cadbury Confectionary Malaysia.

The trading and industrial division delivered a profit of RM64 million in the first half of the financial year, an improvement compared with RM63 million for the same period last year.

The company said it is “cautiously optimistic” that the remaining half of the financial year will be positive.