KUALA LUMPUR: Boustead Holdings Bhd’s second quarter profits ended June 2019 turned in RM84 million in profits, reversing a RM1.3 million in net losses, a year ago.
Group managing director Datuk Seri Amrin Awaluddin said this was mainly driven by a RM120 million gain after plantation land sale.
“All divisions contributed positively to the group’s bottom line, with the exception of the heavy industries and property divisions,’ Amrin said in a statement today.
For the first six months, Boustead recorded a higher consolidated net profit of RM96 million and consolidated pre-tax profit of RM170 million. This was achieved on the back of a consolidated turnover of RM5.05 billion.
The trading and industrial division was the key contributor for the six-month period, posting an improved pre-tax profit of RM82 million.
This was primarily supported by increased contributions from Boustead Petroleum Marketing, which recorded a higher stockholding gain as well as better margins and sales volumes. This mitigated the reduced contribution from UAC Bhd.
The finance and investment division turned in a higher pre-tax profit of RM69 million. This was mainly due to stronger contributions from Affin Bank Bhd, which recorded better results due to write-back of credit impairment losses and higher net gain on financial instruments.
The University of Nottingham in Malaysia also contributed positively to the division.
The pharmaceutical division recorded a pre-tax profit of RM34 million, a slight increase from the previous year’s corresponding period.
The plantation division registered a pre-tax of RM70 million compared with a deficit in the same period last year. This was attributable to the gain on disposal of plantation land amounting to RM120 million.
The property division posted a deficit of RM22 million, while the heavy industries division incurred a deficit of RM63 million, on the back of weaker results from its operating units.