Berjaya Corp returns to profitability in 4Q with higher segmental revenues

KUALA LUMPUR (Aug 30): Berjaya Corp Bhd (BCorp) reported a net profit of RM48.63 million for its fourth quarter ended June 30, 2022 (4QFY22) versus a net loss of RM242.57 million a year earlier, in tandem with higher revenues reported by all its business segments.

This also helped the group return to the black for the full FY22 with a net profit of RM54.44 million, against a net loss of RM459.63 million for FY21.

In a filing with Bursa Malaysia on Tuesday (Aug 30), BCorp reported earnings per share of 0.86 sen for 4QFY22, compared with loss per share of 4.23 sen for 4QFY21.

Quarterly revenue climbed 33.73% to RM2.35 billion from RM1.75 billion, following the resumption of international and domestic travel and further relaxation of the Covid-19 standard operating procedures.

BCorp's quarterly profit from operations surged 779% to RM186.2 million from RM21.2 million in 4QFY21.

"The pre-tax loss for the quarter under review narrowed by 92% to RM16.72 million from RM208.1 million loss in the corresponding quarter of the previous year with the overall improved performance from the group's operations. The loss was due to the provision of partial impairment on balance sale proceeds of the Great Mall Project (GMOC) amounting to RM197.8 million in view of the prolonged and arduous enforcement procedures of the arbitration award.

"Notwithstanding the partial impairment made, GMOC is vigorously pursuing enforcement in both jurisdictions in the PRC and Hong Kong. Excluding the partial impairment of RM197.8 million, the group would have reported a pre-tax profit of about RM181.1 million," said BCorp.

BCorp said its net profit of RM54.44 million for the full FY22 was contributed by the retail and hospitality segments, higher net investment-related income and the share of better results from associates and joint ventures.

Revenue for the year increased 10% to RM8.21 billion from RM7.46 billion in FY21.

The recent rise in global inflation rates caused by the reduction in commodity supplies and disruptions in supply chains, brought on by the ongoing Russia-Ukraine war and the Covid-19 lockdowns in China as well as the geopolitical tension, have certainly impacted the economic recovery rate.

"Taking into account the aforesaid and barring any unforeseen circumstances, the directors are confident that the business operations of the group [for FY23] will show better performance, despite having to bear the rising operating costs going forward," the group added.

BCorp shares closed unchanged at 24 sen on Tuesday, valuing the group at RM1.41 billion.