PETALING JAYA: Berjaya Corporation Bhd (BCorp) registered revenue of RM2.23 billion for the first quarter ended Sept 30, 2024 (Q1’25) compared to revenue of RM2.57 billion in the corresponding quarter of the previous financial year.
The group incurred a pre-tax loss of RM101.58 million in the quarter under review compared to a pre-tax profit of RM97.30 million in the previous year’s corresponding quarter.
The performance of the group in Q1’25 is attributed to the following segments:
Retail (Non-Food) recorded lower revenue, mainly contributed by H.R. Owen Plc. The company reported lower revenue in its reporting currency, the pound sterling and this decline was further increased when converted into ringgit due to unfavourable foreign exchange effects. The drop in revenue was mainly attributed to lower sales volume from the new car sector, which was impacted by the product life cycle of car models being phased out. Additionally, manufacturers’ shift towards electrification and hybrid car re-engineering, coupled with challenging economic conditions and uncertain sentiments in the United Kingdom following the general election held in July further softened sales in the quarter under review.
A pre-tax loss was reported, primarily due to H.R. Owen’s reduced revenue and margin compression. This was a result of intense price competition caused by an oversupply of cars from certain manufacturers. Consequently, H.R. Owen incurred a pre-tax loss, compared to a pre-tax profit recorded in the same quarter last year, reflecting the combined impact of reduced revenue and margin compression.
Retail (Food) also reported lower revenue and pre-tax loss, mainly due to the prolonged impact from the ongoing sentiment in relation to the Middle East conflict.
Property reported lower revenue and pre-tax loss, mainly due to the completion of The Tropika Bukit Jalil project in the preceding quarter and lower sales of the residence units of an overseas project.
Hospitality posted higher revenue driven by increase in overall occupancy rates during the quarter compared to the previous year’s corresponding quarter. The lower pre-tax profit reported was mainly due to the higher operating expenses incurred.
Services reported a lower revenue in the first quarter, mainly due to the gaming business operated by STM Lottery Sdn Bhd having two fewer draws and lower average sales per draw, following smaller accumulated jackpot prizes in the quarter. However, this was mitigated by higher revenue reported by the managed telecommunications network services (MTNS) and Cloud & Internet-of-Things businesses. Additionally, a higher pre-tax profit was reported, mainly due to the higher gross profit from the MTNS business, as well as the deconsolidation effect of Singapore Institute of Advanced Medicine Holdings Ltd. These factors offset the lower pre-tax profit reported by STM Lottery.
On a consolidation basis, the group incurred a pre-tax loss for the quarter under review after taking into account of fair value losses from other investments and impairment on investment in associated companies, as well as higher foreign exchange losses incurred in the current quarter.
The board did not recommend any dividend for the financial period ended Sept 30, 2024.
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 geopolitical tensions. The goup will monitor the prevailing global and local political development in the countries where it has business operations.
Directors are cautiously optimistic that the performance of the group’s business segments for the remaining quarters of the financial year ending June 30, 2025 will be satisfactory.
