KUALA LUMPUR (May 28); Boustead Holdings Bhd net profit for the first quarter ended March 31, 2012 rose 28.87% to RM144.60 million from RM112.20 million on the back of 51.48% increase in revenue to RM2.4 billion from RM1.59 billion in 2011.
Earnings per share was 13.98 sen from 10.85 sen previously, while net assets per share was RM4.43.
Boustead declared a first interim single tier dividend of 7.5 sen, amounting to a total payout of RM77.6 million.
Boustead deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin said the company had started the financial year on a very strong note with almost all Divisions outpacing the results for the same quarter under review a year earlier.
Lodin said the plantation division remained the major contributor to the Group delivering a profit of RM92 million.
He said this was a marginal decrease compared with the corresponding period last year due to lower crude palm oil prices.
“For the period under review the Division achieved an average CPO price of RM3,143 per MT (corresponding period 2011: RM3,541 per MT). Crop production was higher with fresh fruit bunch for the period under review at 282,171 MT, marking an 11% increase compared with 253,586 MT produced in last year’s first quarter,” he said.
He said the property division performed well recording a profit of RM40 million compared with RM12 million achieved in the preceding year’s corresponding period, due to a sale of a piece of vacant land during the period under review.
Lodin said the pharmaceutical division reported a profit of RM36 million, a significant increase, compared with RM9 million for the corresponding period last year.
“Driving these results were improved operational efficiencies which resulted in on time deliveries and better supplier management. These initiatives had a direct impact on the Division’s revenue which then contributed to better margins and profits.”
“Except for one Division, all our Divisions have delivered on the bottom line. We have seen exponential improvements in profit contribution for the quarter under review and the most significant improvements on a year-on-year basis was driven by the Pharmaceutical Division,” he said.
Lodin said the Boustead was optimistic that the coming quarters would bode well for the group given the positive outlook for CPO prices.
“Additionally, we expect the Pharmaceutical Division to continue on its positive track record of delivering strong earnings and hope to see progressive billings on the second generation patrol vessels for the Heavy Industries Division.”
“As we look to the next few quarters and despite uncertainties in the global economy, the Group is confident of sustaining its earnings given the potential of organic growth from the various Divisions”, said Lodin.