BCorp Q3 net profit soars

by **Cals** Thu 27 Mar 2014, 08:24

[size=33]BCorp Q3 net profit soars[/size]

Posted on 27 March 2014 - 05:37am

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[size=14]PETALING JAYA: Berjaya Corp Bhd's (BCorp) net profit for the third quarter ended Jan 31, 2014 (Q3) has jumped to RM15.97 million from RM1.03 million a year ago mainly due to contribution from the property investment and development, and marketing of consumer products and services segments.

Revenue for the quarter rose 33.94% to RM2.37 billion from RM1.77 billion a year ago, also mainly due to contribution from the property investment and development, and marketing of consumer products and services segments.

The group said in a filing with Bursa Malaysia yesterday that it posted higher net profit despite incurring higher finance costs and foreign exchange losses.

Under the marketing of consumer products and services segment, its motor distribution business recorded higher profits mainly due to the higher revenue and improved gross profit margin the Q3.

"However, the retail distribution business recorded lower losses mainly due to lower operating costs incurred by operating units in the developed countries in the current quarter under review," it said.

The property investment and development segment reported higher profits but the hotels and resorts segment reported a lower profit contribution mainly due to higher operating expenses despite reporting higher revenue in Q3.

The gaming business recorded lower profit mainly due to the corporate exercise expenses incurred by BToto Group pursuant to the cash offer for HR Owen via Berjaya Philippines Inc (BPI) and higher prize payout incurred by Sports Toto Malaysia Sdn Bhd.

"The motor distribution business reported a higher revenue compared with the preceding year corresponding quarter as the current quarter under review benefited from higher sales volume due to favourable demand for new car models from the market and consolidation of HR Owen's revenue since it became a subsidiary company of the group on Oct 11, 2013.

"However, the retail distribution business reported a lower revenue in the current quarter under review mainly due to the results of the marketing initiatives launched in certain countries were below expectations," it said.

For the nine months ended Jan 31, 2014, its net profit rose 82.82% to RM90.03 million from RM49.25 million a year ago while revenue rose 15.39% to RM6.16 billion from RM5.34 billion a year ago.

"Given the group's diverse businesses and the current economic outlook, the directors are of the view that the group's performance will continue to remain challenging in the remaining quarter of the financial year ending April 30, 2014," it said.
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