Berjaya Corp’s Q2 profit up 44.4% on higher property contribution

PETALING JAYA: Berjaya Corp Bhd’s net profit soared 44.4% for the second quarter ended Oct 31, 2016, buoyed by higher contribution from the property investment and development businesses arising from the sale of residences from its Four Seasons Hotel in Kyoto, Japan project as well as higher profit recognition from a property project in China.

The group made a net profit of RM176.51 million for the quarter, compared with RM122.26 million in the previous corresponding period. Revenue for the quarter under review expanded 8.9% from RM2.26 billion to RM2.46 billion.

In a filing with the stock exchange, the group said the motor distribution business reported a higher pre-tax profit due to higher sales volume.

Higher contribution from the Starbucks operations in Malaysia and reduced losses from the closure of certain non-performing franchised food outlets also led to higher pre-tax profit for the restaurants and cafes business.For the hotels and resorts business, its higher pre-tax profit was contributed by higher revenue.

However, the retail distribution business reported a pre-tax loss, due to unfavourable economic conditions in China while the gaming business reported lower pre-tax profit, dragged down by higher prize payout and operating expenses.

Berjaya Corp is of the view that the group’s operating environment will be very challenging going forward given the prevailing economic conditions and global financial outlook.

For the first half of the year, Berjaya Corp’s net profit fell 36.2% from RM178.39 million to RM113.83 million on the back of a 6.6% rise in revenue from RM4.39 billion to RM4.68 billion.