Berjaya Corp posts Q2 pre-tax profit of RM34.1 million

PETALING JAYA: Berjaya Corp Bhd (BCorp) registered a pre-tax profit of RM34.13 million in the second quarter ended Oct 31, 2018, compared with a pre-tax loss of RM153.46 million in the previous year’s corresponding quarter.

The group said in a statement today that the operating profit for the second quarter was higher mainly due to higher contribution from the consumer products and services segment and gain from foreign exchange translations.

BCorp said the consumer products and services segment also reported a pre-tax profit for the quarter, mainly attributable to the lower operating expenses recorded by the retail distribution business following its implementation of a rationalisation exercise in the previous year to close non-performing stores and reduce operating expenses.

The motor distribution business also reported a higher pre-tax profit in the current quarter mainly from the HR Owen operations, it added.

The group noted that the pre-tax loss in the previous year was mainly due to the provision for impairment of a portion of the balance sales proceeds from the sale of the Berjaya (China) Great Mall Co Ltd project in China which amounted to RM155.08 million and the loss on partial disposal of an associated company.

During the quarter, BCorp registered a lower revenue of RM1.99 billion against RM2.19 billion a year ago, dragged by lower contribution from the consumer products and services segment and the property segment.

For the six-month period, the group reported a pre-tax profit of RM193.45 million versus a pre-tax loss of RM91.21 million in the previous year’s corresponding period, while revenue declined 5.7% to RM4.13 billion from RM4.38 billion.

On its prospects, the group said it is of the view that its operating environment will be challenging for the remaining quarters of the financial year, given the prevailing economic conditions and global financial outlook.

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