MARKET DEVELOPMENT
Weak CPO prices Hit Boustead Profit
Weak CPO prices Hit Boustead Profit
23/05/2013 (The Star) - Diversified conglomerate Boustead Holdings Bhd's net profit for the first quarter ended March 31 slipped to RM99.9mil compared with RM144.6mil a year ago on lower crude palm oil (CPO) prices impacting its plantation division.
However, group revenue soared to RM2.5bil from RM2.3bil last year.
For the period under review, earnings per share was 9.7 sen while net assets per share stood at RM4.53.
It has declared a dividend of 7.5 sen, amounting to a total payout of RM77.6mil for the said quarter.
Deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin (pic) said the first quarter had certainly been challenging, bearing on organic growth in particular.
“Global volatility made an impact on CPO prices, followed by marginal declines from our divisions, which resulted in an overall decline in group profitability,” he said in a statement yesterday.
The plantation division was severely impacted by depressed commodity prices and a decline in crop production for the period under review, registering a profit of RM31mil compared with RM92mil for the same period last year.
The average palm oil price was RM2,335 per tonne, representing a decline of 26% compared with the previous corresponding period's average of RM3,164 per tonne.
Crop production of 258,394 tonnes for the quarter, meanwhile, was 6% less than the previous year.
The property division was the major contributor to the group, delivering a profit of RM33mil.
However, this was a decline of 17% compared with the RM40mil registered in the year-ago period. The previous year's results benefited from the inclusion of a RM25.5mil gain from the disposal of an investment property.
The trading and industrial division contributed a profit of RM30mil, a 14% drop compared with last year's corresponding quarter.
Although BH Petrol registered a higher turnover as a result of increased sales volume, it was not sufficient to cushion the lower stockholding gains recorded.
The pharmaceutical division reported a profit of RM30mil, a decline of 17% against the same period last year. The division's results were impacted by the provision for doubtful debts, while gross profit margin was lower as a result of higher direct overheads.
As the heavy industries division's performance was no longer impacted by costs from legacy projects, the division recorded a profit of RM26mil, a significant improvement compared with the deficit of RM6.5mil recorded in the same quarter last year.
Higher progress achieved on the Littoral Combat Ship project also had a positive impact on the quarter's results. MHS Aviation increased its profit contribution to the division as a result of the sale of an aircraft in addition to lower maintenance costs.
The finance and investment division, meantime, registered a profit of RM25mil for the quarter under review, a slight 4% decline compared with 2012's corresponding quarter. The division's results were supported by contributions from the Affin Group and Cadbury.
“As we start the year on a challenging note, we will heighten our efforts and seek out new opportunities while focusing on improving organic growth. We are confident that our strong fundamentals in terms of our diversified streams of income and viable businesses would allow us to accomplish this and deliver a profitable year,” concluded Lodin.
However, group revenue soared to RM2.5bil from RM2.3bil last year.
For the period under review, earnings per share was 9.7 sen while net assets per share stood at RM4.53.
It has declared a dividend of 7.5 sen, amounting to a total payout of RM77.6mil for the said quarter.
Deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin (pic) said the first quarter had certainly been challenging, bearing on organic growth in particular.
“Global volatility made an impact on CPO prices, followed by marginal declines from our divisions, which resulted in an overall decline in group profitability,” he said in a statement yesterday.
The plantation division was severely impacted by depressed commodity prices and a decline in crop production for the period under review, registering a profit of RM31mil compared with RM92mil for the same period last year.
The average palm oil price was RM2,335 per tonne, representing a decline of 26% compared with the previous corresponding period's average of RM3,164 per tonne.
Crop production of 258,394 tonnes for the quarter, meanwhile, was 6% less than the previous year.
The property division was the major contributor to the group, delivering a profit of RM33mil.
However, this was a decline of 17% compared with the RM40mil registered in the year-ago period. The previous year's results benefited from the inclusion of a RM25.5mil gain from the disposal of an investment property.
The trading and industrial division contributed a profit of RM30mil, a 14% drop compared with last year's corresponding quarter.
Although BH Petrol registered a higher turnover as a result of increased sales volume, it was not sufficient to cushion the lower stockholding gains recorded.
The pharmaceutical division reported a profit of RM30mil, a decline of 17% against the same period last year. The division's results were impacted by the provision for doubtful debts, while gross profit margin was lower as a result of higher direct overheads.
As the heavy industries division's performance was no longer impacted by costs from legacy projects, the division recorded a profit of RM26mil, a significant improvement compared with the deficit of RM6.5mil recorded in the same quarter last year.
Higher progress achieved on the Littoral Combat Ship project also had a positive impact on the quarter's results. MHS Aviation increased its profit contribution to the division as a result of the sale of an aircraft in addition to lower maintenance costs.
The finance and investment division, meantime, registered a profit of RM25mil for the quarter under review, a slight 4% decline compared with 2012's corresponding quarter. The division's results were supported by contributions from the Affin Group and Cadbury.
“As we start the year on a challenging note, we will heighten our efforts and seek out new opportunities while focusing on improving organic growth. We are confident that our strong fundamentals in terms of our diversified streams of income and viable businesses would allow us to accomplish this and deliver a profitable year,” concluded Lodin.