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Boustead Turns To RM55.7m Profit In 3Q On Better Segmental Performance

KUALA LUMPUR (Nov 30): Boustead Holdings Bhd posted a net profit of RM55.7 million for the third quarter ended Sept 30, 2021 (3QFY21), from a net loss of RM51.8 million a year ago, on the better performance of its plantation, trading and investment, and pharmaceutical divisions.

This more than offset losses from its property and industrial division. Quarterly earnings per share came in at 2.75 sen from losses of 2.56 sen per share previously.

Quarterly revenue, meanwhile, rose to RM3.68 billion from RM1.89 billion for 3QFY20, a filing with the local bourse showed.

For the cumulative nine-month period ended Sept 30, 2021 (9MFY21), Boustead’s net profit rose further to RM91.5 million or 4.51 sen per share, from a net loss of RM198.6 million or 9.8 sen per share for 9MFY20, as contributions from all segments improved.

The bottom line was also bolstered by one-off gains on the disposals of the Royale Chulan Bukit Bintang hotel and an investment property of RM84.6 million and RM13.1 million respectively, it said.

Boustead’s pharmaceutical division Pharmaniaga Bhd is currently involved in Sinovac’s global clinical trial for children aged three to 11 years, with interim efficacy results expected by early 2022.

“As for the concession of the logistics and distribution business, the division will continue to carry out its duties and responsibilities as the MoH’s (Ministry of Health) logistic partner until Nov 30, 2024.

“A series of discussions and negotiations for the renewal of the concession has been carried out and the outcome is very positive [so far],” Boustead said.

The division is also setting up an insulin manufacturing plant to meet the needs to treat non-communicable diseases, expected to be ready by 2025.

Meanwhile, Boustead’s heavy industries division will also continue to explore with Airbus Defence and Space its plan to expand into rotary-wing and military fixed-wing maintenance, repair and overhaul (MRO), as well as into the commercial helicopter segment.

Boustead’s share price settled unchanged at 55 sen at Tuesday’s (Nov 30) noon market break, giving it a market capitalisation of RM1.11 billion.

Source : Boustead turns to RM55.7m profit in 3Q on better segmental performance | The Edge Markets