Update Berjaya Corp 1Q net profit falls 84.5% to RM8.3 mil

by **Cals** Mon 29 Sep 2014, 22:23

Update Berjaya Corp 1Q net profit falls 84.5% to RM8.3 mil

Business & Markets 2014

Written by Jeffrey Tan of theedgemalaysia.com

Monday, 29 September 2014 18:38

KUALA LUMPUR (Sept 29): Berjaya Corp Bhd’s net profit fell 84.5% to RM8.3 million in the first quarter ended July 31, 2014, from RM53.4 million in the previous corresponding quarter.

Revenue however jumped 23% to RM2.49 billion, from RM2.02 billion previously.

In a statement to Bursa Malaysia, the diversified group, controlled by Tan Sri Vincent Tan, said its pre-tax profit was lower than the previous year’s corresponding quarter, due mainly to lower contribution from its hotels and resorts segment.

Berjaya Corp said in the previous year’s corresponding quarter, the profit of the hotel and resorts business included the gain on disposal of a hotel property, Berjaya Singapore Hotel, of about RM94.7 million.

Excluding this gain, the current quarter's results were comparable to last year corresponding quarter's results, it added.

On the higher revenue, Berjaya Corp said it was mainly due to its marketing of consumer products and services segment.

Under that segment, the group said its motor distribution business’ higher revenue was contributed mainly from the consolidation of revenue of H.R. Owen Plc — a subsidiary of Berjaya Sports Toto Bhd.

However, it added the group’s retail distribution business reported lower revenue, mainly due to the closing down of non-performing stores.

“Given the current economic outlook, the directors are of the view that the group's operating performance will be challenging in the remaining quarters of the financial year ending April 30, 2015,” said Berjaya Corp on future prospects.

However, the group expects the overall financial results to be ‘good’, following the acquisition of the remaining equity interests in Berjaya Starbucks Coffee Company Sdn Bhd and the proposed disposal of freehold land in Ulu Selangor, Selangor.