Berjaya Corp posts RM2.19 billion revenue in Q2

PETALING JAYA: Berjaya Corp (BCorp) Bhd reported an 11.1% decline in revenue to RM2.19 billion for the second quarter ended Oct 31, 2017 against RM2.46 billion in the previous corresponding period, mainly due to lower revenue reported by the retail distribution and motor distribution businesses as well as the property investment and development segment.
It swung to a net loss of RM145.99 million from a net profit of RM176.51 million in the same quarter a year ago, mainly dragged by the provision for the impairment of a portion of the balance sales proceeds from the sale of the Great Mall of China project as well as the loss arising from the partial disposal of an associate company.
The conglomerate said in a filing with the stock exchange that the retail distribution business was affected by the weak consumer sentiment coupled with the intense competition in the local and overseas markets.
The motor distribution business under H.R. Owen PLC also reported lower revenue due to the softening demand in the UK car market as well as the product life cycle of the car models available for sale.
Meanwhile, the lower contribution from the property investment and development business was due to a much-reduced contribution from the group’s foreign projects in the current quarter.
However, BCorp noted that the reduced revenue from the retail distribution and motor distribution businesses was mitigated by higher revenue recorded by other segments.
“The group recorded higher revenue from the hotels and resorts business, mainly due to higher overall occupancy and average room rates, while the higher revenue from the restaurants and cafes business was mainly due to additional cafes operating in the current quarter. The gaming operations also recorded higher revenue in both Malaysia and Vietnam.”
For the first half of the year, BCorp’s top line was down by 6.4% from RM4.68 billion to RM4.38 billion, with a net loss of RM189.38 million versus a net profit of RM113.83 million in the same period last year.
Given the prevailing economic conditions and global financial outlook, BCorp directors are of the view that the group’s operating environment will be challenging going forward.