PETALING JAYA: Berjaya Corporation Bhd (BCorp) posted a higher revenue of RM2.56 billion for its fourth quarter ended June 30, 2023 compared with RM2.35 billion in the corresponding quarter of the previous financial year.
The higher revenue was mainly contributed by the non-food retail business and hospitality segments. In the non-food retail business segment, HR Owen Plc’s revenue increased mainly due to improved sales from both new and used car
sectors coupled with favourable foreign exchange effect.
The property segment reported a marginal increase while the hospitality segment delivered a higher revenue mainly due to the higher overall average room rates as compared to the corresponding quarter of the previous year.
The revenue in the services segment is driven by STM Lottery Sdn Bhd. The total revenue in Q4’23 was lower than the corresponding quarter of the previous year mainly due to fewer draws conducted in the quarter (40 draws this year compared with 42 draws in the corresponding quarter last year).
The group registered a lower pre-tax loss of RM8.7 million in the current quarter compared with RM16.72 million in the corresponding quarter of the previous year, due to lower net investment-related expenses incurred as well as share of better results from associated companies.
HR Owen’s higher pre-tax profit was due to lower restoration cost and lower lease related expenses incurred in the current quarter upon relocation of certain showrooms and after sales service sites to the Hatfield Centre. The property segment reported a higher pre-tax profit as a result of the reduction of development costs for a completed project upon finalisation of construction billings. The better performance from hospitality segment was in tandem with the higher revenue attained.
For the financial year ended June 30, 2023, BCorp registered revenue of RM9.64 billion against RM8.16 billion in the previous financial year, representing an increase of 18%. The better revenue for the financial year under review was contributed by all business segments in the group.
The non-food retail segment’s higher revenue was bolstered by stronger sales registered by HR Owen in both new and used cars sectors coupled with favourable foreign exchange effect during the financial year under review. The food retail segment also reported a higher revenue from aggressive marketing campaigns and effective promotion strategies, as well as the additional Starbucks cafes operating in Malaysia during the financial year. The property sector registered a higher revenue due to higher property progress billings coupled with the disposal of several parcels of land.
As for the hospitality segment, it reported a higher revenue due to higher overall occupancy rates and average room rates in the current financial year. On top of that, the services segment’s higher revenue was contributed by the gaming operations with improved sales primarily attributed to the full resumption of business operations in the current financial year.
Whilst in the previous financial year, STM Lottery was adversely affected following the cancellation of 37 draws arose from the imposition of nationwide lockdown from June 1, 2021 to September 13, 2021. In addition, the strong sales achieved in the current financial year under review was also driven by higher accumulated jackpot prizes from jackpot games during the financial year under review.
The non-food retail business’s reduced pre-tax earnings was mostly attributable to HR Owen.
HR Owen’s outstanding performance in the previous financial year benefitted from the extraordinarily high demand for used cars as a result of new car supply constraints. The profit margin in the current financial year has also been negatively impacted due to the increased operating costs as a result of inflationary pressures and higher finance costs arising from interest rates hike in the United Kingdom. Even though the food retail business recorded a higher revenue, it had a lower pre-tax profit in the current financial year.
This was mainly due to higher operational costs brought on by inflationary pressures and the unfavourable exchange rate to the US dollar. The improved performance reported by the property, hospitality and services segments was in line with the higher revenue achieved.
Despite the uncertainty in the global economic environment, Malaysia’s economic growth is anticipated to moderate in 2023, supported by robust domestic demand and the lowering of the average inflation rate. The Number Forecast Operator business industry in Malaysia continues to be vigilant and to navigate carefully through the changes in the local government policies.
Due to the increase on consumer spending, a recovery in tourism, and better anticipated labour market circumstances, the group’s business segments are anticipated to perform better. The group will continue to monitor the prevailing global and local political situations in the countries where the group conducts businesses.
Taking into account of the aforesaid and barring any unforeseen circumstances, the Directors are cautiously optimistic that the performance of the business operations of the group for the financial year ending June 30 2024 to be satisfactory.
