KUALA LUMPUR (Aug 29): Berjaya Corp Bhd (KL:BJCORP) widened its fourth quarter net loss year on year, primarily due to weaker results from its retail, property and hospitality segments, though this was partly offset by a strong performance in its services segment.

It incurred a net loss of RM147.84 million in the fourth quarter ended June 30, 2024 (4QFY2024), up from RM79.33 million in 4QFY2023. Group revenue dipped 3.76% to RM2.46 billion from RM2.56 billion, mainly due to lower contributions from the retail and property segments, BJCorp’s filing showed on Thursday.

The group did not declare any dividend for the quarter.

BJCorp reported a decline in revenue and pre-tax loss in the retail segment, primarily driven by reduced income in the food retail business due to negative sentiment surrounding the Middle East conflict.

The non-food retail business also experienced a decrease in revenue, largely attributed to HR Owen plc's lower sales volumes in both new and used car markets, as certain models were phased out at the end of their product life cycles. “Despite this, the impact on HR Owen's revenue was minimised when converted to ringgit Malaysia, due to favourable foreign exchange effects,” said BJCorp.

The property segment also saw lower earnings, mainly because nearly all the residential units in an overseas project were sold in the previous quarter, while an ongoing local project is nearing completion.

Its hospitality segment, meanwhile, registered an increase in revenue due to higher occupancy rates and a surge in tourist arrivals following visa exemptions for some countries. But the group still posted a lower pre-tax profit, largely due to increased operating costs.

For the full FY2024, BJCorp made a net profit of RM446.19 million versus RM110.26 million net loss a year ago, while revenue increased to RM10.04 billion from RM9.61 billion. The higher annual profit was mainly due to the gain on disposal of subsidiary companies totalling RM498.33 million and a gain on remeasurement of retained equity interest in a former subsidiary company of about RM154.05 million.

“Malaysia’s economic growth is expected to be driven by strong domestic demand and the moderation of average inflation rate despite geo-political uncertainties. The group will be monitoring prevailing global and local political developments in the countries where the group has business operations,” the group commented on its prospects.

BJCorp also expects its domestic business segments to improve on the back of strong consumer spending and improvement in tourism activities.

However, the closure of legal number forecast operators outlets in Kedah and Perlis may result in the proliferation of illegal operators in these areas, the group reiterated.

Shares of BJCorp closed up half a sen or 1.59% at 32 sen on Thursday, giving the group a market capitalisation of RM1.91 billion.