KUALA LUMPUR: Berjaya Corporation Bhd (BCorp) registered revenue of RM2.5 billion for its third quarter ended March 31, 2023, which is a 3% increase compared with RM2.42 billion in the corresponding quarter of the previous year; and recorded RM82.2 million pre-tax profit, a decline of 12% compared with RM93.44 million in the corresponding quarter of the previous year.
The improved revenue and operational performance of the group results in the quarter under review was contributed by the following business segments:
> Retail (Food) segment recorded higher revenue mainly due to the opening of new Starbucks cafes in the current quarter. However, the segment reported a lower pre-tax profit in the current quarter which was mainly due to margin compression arising from inflationary pressures thus incurring higher operating costs.
> Property segment recorded higher revenue and pre-tax profit mainly due to higher property progress billings registered from its local project at The Tropika, Bukit Jalil as well as the disposal of several parcels of land.
> Hospitality segment reported higher revenue and pre-tax profit mainly due to the higher overall occupancy rates and average room rates as compared to the previous year corresponding quarter.
The Services segment reported a decrease in revenue in the current quarter mainly due to the lower revenue reported by the gaming operations, which was operated by STM Lottery Sdn Bhd (STM Lottery) as to the current quarter having lesser number of draws as compared to the previous year corresponding quarter.
In addition, the higher revenue in the previous year corresponding quarter was attributable to the Toto Supreme 6/58 Lotto game reaching to a record accumulated jackpot prize.
The Retail (non-food) segment reported a lower revenue mainly due to lower revenue from H.R. Owen Plc (HR Owen). Although HR Owen’s revenue in its local currency i.e. pound sterling for this current quarter was on par with the previous year corresponding quarter, it reported a drop in revenue when converted to ringgit from pound due to the unfavourable foreign exchange effect. The segment also recorded a lower pre-tax profit from HR Owen in the current quarter mainly due to the used car sector profit margin softened in the current quarter compared to the previous year corresponding quarter.
Overall, the group’s pre-tax profitability was impacted by the higher finance costs and lower net investment related income. However, this was partially mitigated by the improved operational profit and a higher share of profits from associated companies.
In the current 9-month period ended March 31, 2023, BCorp reported a revenue of RM7.08 billion, representing an increase of 21% over the revenue of RM5.86 billion reported in the previous year’s corresponding period. The group’s pre-tax profit has also increased by 17% to RM281.87 million over the pre-tax profit of RM241.93 million reported in the previous year’s corresponding period.
The performance of the group’s results in the 9-month period under review was contributed by the following business segments:
> Retail (Food) segment reported a higher revenue in the current period under review mainly due to higher same-store-sales growth particularly from the Starbucks cafe outlets as well as additional Starbucks cafes operating in Malaysia as compared to the previous year corresponding period. However, it reported a lower pre-tax profit in the current period which was mainly due to higher operating costs incurred arising from inflationary pressures.
> Property segment posted higher revenue and pre-tax profit in the current period under review primarily due to higher property progress billings, higher revenue arising from the disposal of several parcels of land as well as higher sales of overseas residence units.
> Hospitality segment reported higher revenue and improved performance in the current period under review mainly due to higher overall occupancy rates and average room rates.
> Services segment recorded improved revenue and pre-tax profit in the current period under review due to the full resumption of STM Lottery business operations in the current period whilst the previous year corresponding period business operations were disrupted by the imposition of nationwide lockdown from June 1, 2021 to Sept 13, 2021 resulting in the cancellation of 37 draws during that period.
The lower revenue recorded by the Retail (non-food) segment was mainly due to the lower revenue contribution from HR Owen and the deconsolidation effect of the two motor trading subsidiaries.
HR Owen reported an increase in revenue in its local currency in the current period as compared to the previous year corresponding period. However, it reported a drop in revenue when converted to ringgit from pound due to the unfavourable foreign exchange effect.
The segment’s lower pre-tax profit was also mainly due to HR Owen pre-tax profit declined in the current period as compared to the previous year corresponding period. The outstanding performance recorded in the previous year 9-month period benefited from the exceptionally strong demand in used car because of new car supply constraints.
The Number Forecast Operation business industry in Malaysia continues to be vigilant and to navigate carefully through changes in the local government policies. The performance of the business segments of the group is expected to improve on the back of strong consumer spending, rebound of tourism activities and better-than-expected labour market conditions.
