Berjaya Corporation Bhd (Bcorp) saw a decline in revenue of RM 2.17 billion as compared to revenue of RM 2.22 billion in the previous year’s corresponding quarter.
The slight dip was mainly attributed due to lower revenue reporter by the property investment and development business segment as compared to the preceding year’s corresponding quarter.
The property investment and development business registered lower revenue in the current quarter due to the much reduced contribution from the Group’s foreign projects as well as lower progress billings in the current quarter.
In a statement, Bcorp said other than the property investment and development segment, the marketing of consumer products and services segment reported lower revenue as the retail distribution business was affected by the weak consumer sentiment coupled with the intense competition in the local and oversea markets.
“Despite reporting a higher profit from operations in the current quarter, the Group’s pre-tax profit in the current quarter was lower at RM6.3 million as compared to the pre-tax profit of RM83.86 million in the previous year’s corresponding quarter due to the lower net investment related income recorded by the Group in the current quarter.
“Included in the investment related income in the previous year’s corresponding quarter was the substantial gain from the disposal of an associated company, Taiga Building Products Ltd., of about RM98.83 million,” said Bcorp.
For the cumulative period of nine months, Bcorp recorded a pre-tax loss of RM84.86 million as compared to the pre-tax profit of RM563.95 million reported in the previous year’s corresponding period mainly due to the provision for impairment on a portion of the balance of GMOC Project sales proceeds, unrealised foreign exchange loss, higher pre-tax loss of the retail distribution business as well as lower pre-tax profit reported by the property investment and development business.
Bcorp registered a revenue of RM6.56 billion as compared to a revenue of RM6.9 billion in the previous year’s corresponding period mainly due to lower contribution from the property investment and development segment and marketing of consumer products and services segment.
The pre-tax profit in the previous financial period included the substantial gain on disposal of an associated company of about RM98.83 million as well as the gain on settlement for surrendering certain assets and lease interests to the relevant authorities of about RM163.64 million.
The higher pre-tax loss reported by the retail distribution business in the current financial period was mainly due to the decrease in revenue and a lower gross profit margin as a result of more aggressive promotional sales in the current period under review.
Moving forward, Bcorp are of the view that the Group’s operating environment will be challenging going forward given the prevailing economic conditions and global financial outlook.