Berjaya Corp posts pre-tax profit of RM62.25m in Q1

PETALING JAYA: Berjaya Corp Bhd (BCorp) saw a lower pre-tax profit of RM62.25 million in the first quarter ended July 31, 2017 compared with RM71.61 million a year ago, mainly due to lower contribution from the property investment and development business as the remaining units of a property project in China had been disposed of in the previous financial year.
It also registered a lower revenue of RM2.20 billion in the current quarter compared with RM2.22 billion in the corresponding quarter of the previous year.
The conglomerate said in a statement that the higher pre-tax profit recorded by the marketing of consumer products and services segment was mainly due to the higher earnings contribution from the motor distribution business, in tandem with the higher revenue achieved.
The retail distribution business, however, continued to incur losses as a result of weak consumer spending sentiment and unfavourable foreign exchange rates.
Meanwhile, the higher pre-tax profit registered by the restaurants and cafes business was underpinned by additional cafes operating. The hotels and resorts business reported a higher pre-tax profit mainly due to contribution from a new hotel.
For the gaming business, its higher pre-tax profit was driven by lower prize payout.
“Given the prevailing economic conditions and global financial outlook, the directors are of the view that the group’s operating environment will be challenging going forward,” BCorp said.
BCorp closed 2.9% higher today at 35.5 sen with 13.7 million shares traded.