KUALA LUMPUR, May 31 — Boustead Holdings Bhd posted a net profit for the first quarter ended March 31, 2021 (Q1 FY2021) of RM43.1 million compared to a net loss of RM73.1 million in the same quarter last year.
Revenue decreased by eight per cent to RM2.1 billion from RM2.3 billion recorded last year due to lower contributions from divisions including property and industrial, heavy industries, pharmaceutical as well as trading, finance and investment.
“Revenue from the property development segment dropped due to lower progress billing for our project at Mutiara Rini, Johor, while the property investment and hotel segments recorded lower revenue due to reduced rental income from malls and hotel occupancy,” it said in a filing with Bursa Malaysia today.
On the other hand, it said the industrial segment recorded better revenue due to increase in export sales.
Nevertheless, the plantation division recorded a higher revenue of RM171.9 million, an increase by six per cent mainly due to higher palm product prices.
On the outlook, the group said its diversified operations mainly in the essential services would continue to bolster the group’s durability in facing the impact of the pandemic.
“The group will also continue with the efforts to seek new opportunities to strengthen its performance in line with the Reinventing Boustead strategy that focuses on performance improvement programme and new value creation within the existing core businesses,” it said.
Boustead also said it would creatively change business models for new revenue sources, venturing into the digital services and technology sector, focusing on talent development and rationalising non-strategic assets.
“The current high crude palm oil prices shall contribute positively to this year’s plantation division earnings but may be moderated by lower production due to the existing labour shortage at the estates,” it added. — Bernama