BCorp achieves annual net profit RM139.95m

PETALING JAYA: Berjaya Corp Bhd (BCorp) swung to the black registering a net profit of RM3.24 million for the fourth quarter (Q4) ended April 30, 2017 against a net loss of RM368.91 million in the previous corresponding period, due to the absence of non-cash losses.
The group incurred an impairment in value of goodwill of RM473.20 million and assets held for sale relating to Berjaya (China) Great Mall Co Ltd of RM131.81 million in the same quarter a year ago.
Its revenue, however, fell 10% from RM2.48 billion to RM2.23 billion, dragged down by lower revenue reported by the property investment and development business segment because the remaining units of a property project in China were disposed of in Q3.
BCorp’s motor distribution and the hotels and resorts businesses reported a higher pre-tax profit due to higher revenue.
The retail distribution business reduced its pre-tax loss, driven by aggressive promotional campaigns conducted coupled with lower operating expenses resulting from various cost-cutting measures implemented.
The restaurants and cafes, property investment and development and gaming operations business segments, however, reported lower pre-tax profits.
The lower pre-tax profit of restaurants and cafe business were mainly due to the slowdown of the economy. In view of the slowdown, management undertook measures to curtail further losses in future such as closure of non-performing restaurants and outlets.
The property investment and development business contributed lower pre-tax profit mainly due to lower revenue, while the lower pre-tax profit from the gaming business was mainly due to the lower profit contribution from Sports Toto Malaysia Sdn Bhd arising from its lower revenue and the exceptionally lower prize payout in the previous year’s corresponding quarter.
BCorp said in a filing with the stock exchange that given the prevailing economic conditions and global financial outlook, the directors are of view that the group’s operating environment will be very challenging going forward.
For the financial year ended April 30, BCorp’s net profit stood at RM139.95 million versus a net loss of RM177.22 million in the same period a year ago on the back of a 1.3% rise in revenue from RM9.02 billion to RM9.14 billion.