PETALING JAYA: Berjaya Corporation Bhd (BCorp) registered revenue of RM2.20 billion for the second quarter ended Dec 31, 2024, closely aligned to revenue of RM2.23 billion reported in the same quarter of the previous year.
The group made significant progress by reducing its pre-tax loss to RM39.02 million in the current quarter under review compared to a pre-tax loss of RM119.30 million reported in the previous year corresponding quarter.
The group’s results in the quarter under review were contributed by the following business segments:
Retail (Non-Food) business reported higher revenue, largely driven by the strong performance of JR Owen Plc. This growth was fuelled by strong demand in the used car sector, which resulted in both higher sales volume and increase in average selling prices. Furthermore, sales were further boosted by the introduction of the Lotus marque, now represented by HR Owen in London. The higher revenue from HR Owen offset the lower revenue from Cosway operations, as a result of the closure of non-performing stores in certain countries.
The non-food retail business also reported a pre-tax profit for the current quarter, mainly driven by Cosway’s profitability despite registering a decline in revenue. This was attributed to a strategic cost rationalisation exercise. Additionally, HR Owen reported improved results, with a reduction in losses reflecting revenue growth amidst the challenging economic environment in the United Kingdom.
The food retail business posted a lower revenue due to the prolonged impact of ongoing sentiments surrounding the Middle East conflict, which has contributed to a higher pre-tax loss in the current quarter.
The property segment reported a decline in revenue and a pre-tax loss for the current quarter, mainly due to the completion of The Tropika Bukit Jalil project in the final quarter of the previous financial year. Nevertheless, this decline was mitigated by increased sales of residence units from a local project in the current quarter under review.
The hospitality segment reported a higher revenue and pre-tax profit, primarily due to the improved overall occupancy rates during the current quarter compared to the corresponding quarter of the previous year.
The services segment posted a higher revenue in the current quarter, driven by the gaming business operated by STM Lottery Sdn Bhd with improvements in average sales per draw and higher accumulated jackpot prizes in Lotto games, despite having one fewer draw in the current quarter.
The segment reported a higher pre-tax profit primarily attributed to a combination of higher sales and lower prize payout, as well as the deconsolidation effect of the Singapore Institute of Advanced Medicine Holdings Ltd (SIAMH).
For the six-month period ended Dec 31, 2024, the group registered revenue of RM4.43 billion and incurred a pre-tax loss of RM140.60 million. This compares to the previous year’s revenue of RM4.80 billion and a pre-tax loss of RM22.0 million.
On prospects, BCorp said Malaysia’s economic growth is expected to be driven by strong domestic demand and the moderation of average inflation rate despite the uncertainties arising from ongoing geopolitical tensions. The group will keep a close watch on the current global and local political developments in the countries where it operates. The performance of the domestic business segments of the group is expected to improve, supported by strong consumer spending and improvement in tourism activities.
As for the gaming business, it is expected to maintain its growth trajectory, in line with the ongoing popularity of its Lotto and Digit games to achieve commendable results.
Considering these factors and barring any unforeseen circumstances, the directors remain cautiously optimistic that the performance of the business operations of the group for the remaining quarters of the financial year ending June 30, 2025 to be satisfactory.
