KUALA LUMPUR: Berjaya Corp Bhd (BCorp) returned to the black, posting a net profit of RM101.01mil in the second quarter ended Dec 31, 2021 (4Q22) against a net loss of RM49.71mil.
The conglomerate said the improved performance was due to higher contribution by retail and hospitality segments and the gain on disposal of an associated company of about RM161mil, as well as stronger results from its other associates and joint ventures.
BCorp said while the hospitality and retail segments helped increase BCorp’s pre-tax profit, the company also gained from its disposal of a 30% stake in an associated company, Razer Fintech Holdings Ltd. BCorp continues to hold a 19% stake in the company.
The group registered a revenue of RM2.05bil in 4Q22 as compared to RM1.94bil in the corresponding quarter of the previous year.
“The increased revenue for the quarter was primarily driven by the retail and hospitality segments. In the non-food retail segment, H.R. Owen PLC which operates in the United Kingdom, saw higher sales which were mainly generated from the used car sector, due to a continued supply shortage,” BCorp said in a statement.
In the food retail segment, revenue increased due to the easing of restrictions on travel and the gradual opening of public spaces. Coupled with Christmas and year-end celebrations, this segment saw a boost, especially from Starbucks Coffee outlets that showed higher same-store-sales growth.
BCorp said the hospitality segment was similarly buoyed by the gradual easing of Covid-19 restrictions. It saw a small revival after several depressed quarters.
The segment showed higher revenue through both increased occupancy rates as well as higher average room rates. This applied to both the local and international properties in the group.
The services sector saw a drop due to STM Lottery Sdn Bhd (formerly known as Sports Toto Malaysia Sdn Bhd). The decrease was mainly due to softer recovery after it resumed business operations on Sept 14, 2021 following the nationwide lockdown that was implemented from June 1 to Sept 13, 2021.
“This quarter’s results are a combination of several factors. The easing of Covid-19 restrictions was critical and presented a semblance of normalcy for our businesses especially in the retail and hospitality segment.
“However, these positive results for the group are also a reflection of the various business improvement initiatives that were undertaken by the operating companies,” group chief executive officer Jalil Rasheed said.
As both Malaysia and other countries further ease restrictions, BCorp
is cautiously optimistic for a gradual improvement of the business’s performance for the remaining quarters of the financial year.
“While there remain uncertainties, I am fairly confident that BCorp is now much better prepared to weather the future through the various initiatives that we have embarked on.
“Barring any unforeseen circumstances, we are expecting continued positive results and growth for BCorp in the second half of FY22,” Jalil said.
In the first six months to Dec 31, 2021, BCorp registered a net profit of RM41.7mil against a net loss of RM108.66mil a year ago, while revenue fell 11.4% to RM3.44bil against RM3.88bil in the same period last year.