PETALING JAYA: Berjaya Corporation Bhd (BCorp) registered a higher revenue of RM2.57 billion in the quarter ended Sept 30, 2023 (Q1’24) contributed by all business segments compared with revenue of RM2.24 billion in the corresponding quarter of the previous financial year.
The group recorded a lower pre-tax profit of RM101.99 million in the quarter under review compared with a pre-tax profit of RM107.59 million in the previous year’s corresponding quarter, BCorp said in a statement yesterday.
The group’s results in the quarter under review were contributed by the following:
• Retail (non-food) segment recorded a higher revenue from HR Owen Plc due to improved new car sales contribution from its new multipurpose showroom, service centres and headquarters at Hatfield, as well as the favourable foreign exchange effect during the quarter under review.
A lower pre-tax profit reported by HR Owen was mainly due to higher operating expenses incurred coupled with higher finance costs arising from interest rate hike and higher stocking loans as compared to the previous year corresponding quarter.
• Property segment reported an increase in revenue and reported a pre-tax profit in the current quarter under review mainly due to sales of overseas and local residences units.
• Hospitality segment posted a higher revenue and higher pre-tax profit due to the higher overall average room rates as compared to the previous year corresponding quarter.
• Services segment reported an increase in revenue from gaming operations operated by STM Lottery Sdn Bhd despite having fewer draws conducted in the current quarter (42 draws versus 46 draws in the previous year corresponding quarter). The higher revenue achieved was driven by the improvement in average sales per draw as well as higher accumulated jackpot prizes in both digit jackpot and lotto games. This segment also reported a drop in pre-tax profit due to the higher prize payout from STM Lottery in the current quarter under review.
• Retail (food) segment had a marginal drop in revenue due to lower sales recorded by the Kenny Rogers Roasters operations in Malaysia in the current quarter. This segment also reported a lower pre-tax profit in the current quarter mainly due to the margin compression from inflationary cost pressure.
Overall, the group’s pre-tax profit was impacted by the higher finance costs.
The board declared a first interim share dividend of six treasury shares for every 100 ordinary shares held equivalent to 1.44 sen dividend per share amounting to RM81.53 million in respect of financial year ending June 30, 2024 to be credited on Jan 26, 2024. The entitlement date has been fixed on Jan 11, 2024.
As for prospects, BCorp said Malaysia’s economic growth is expected to be driven by moderate domestic demand and the moderation of average inflation rate despite the uncertainties arising from geopolitical tensions.
The Number Forecast Operation (NFO) business segment of the group is cognisant of the concerns on the local political developments in the northern states of Peninsular Malaysia, with closures of outlets in the state of Kedah and Perlis which could lead to proliferation of illegal NFO activities in the underserved areas. The management is continuing to take the necessary steps to address this issue.
The performance of the business segments of the group is expected to improve on the back of moderate consumer spending, rebound of tourism activities and better-than-expected labour market conditions. The group will monitor the prevailing global and local political development in the countries where the group has business operations.
Barring any unforeseen circumstances, the directors are cautiously optimistic that the performance of the business operations of the group for the remaining quarters of the financial year ending June 30, 2024 will be satisfactory.
