Berjaya Corp registers RM101m net profit in Q2

PETALING JAYA: Berjaya Corp Bhd (BCorp) posted a net profit of RM101.01 million in the second quarter ended Dec 31, 2021 compared with a net loss of RM49.71 million a year ago, thanks to the hospitality and retail segments, a gain from disposal of a 30% stake in associate company Razer Fintech Holdings Ltd (BCorp continues to hold 19% stake in the company), as well as stronger results from its other associates and joint ventures.

It registered revenue of RM2.06 billion, 5.9% higher than RM1.94 billion in the corresponding quarter of the previous year primarily driven by the retail and hospitality segments.

In the non-food retail segment, HR Owen PLC, which operates in the UK, saw higher sales which were mainly generated from the used-car sector, due to a continued supply shortage.

In the food retail segment, revenue increased due to the easing of restrictions on travel and the gradual opening of public spaces. Coupled with Christmas and year-end celebrations, this segment saw a boost, especially from Starbucks Coffee outlets that showed higher same-store-sales growth.

The hospitality segment was similarly buoyed by the gradual easing of Covid-19 restrictions. It saw a small revival after several depressed quarters. The segment showed higher revenue through both increased occupancy rates as well as higher average room rates. This applied to local and international properties in the group.

The services sector saw a drop due to STM Lottery Sdn Bhd (formerly known as Sports Toto Malaysia Sdn Bhd). The decrease was mainly due to softer recovery after it resumed business operations on Sept 14, 2021 following the nationwide lockdown that was implemented from June 1 to Sept 13, 2021.

“This quarter’s results are a combination of several factors. The easing of Covid-19 restrictions was critical and presented a semblance of normalcy for our businesses especially in the retail and hospitality segment. However, these positive results for the group are also a reflection of the various business improvement initiatives that were undertaken by the operating companies,” said BCorp group CEO Jalil Rasheed.

For the six months period, BCorp registered a net profit of RM41.70 million compared with a net loss of RM108.66 million a year ago, while revenue dropped 11.4% to RM3.44 billion from RM3.88 billion in the same period last year.

Going forward, the Covid-19 situation, while creating a stop/start environment, seems to have stabilised somewhat, although the Omicron variant and geopolitical events still pose a real concern. As both Malaysia and other countries ease restrictions further, BCorp is cautiously optimistic for a gradual improvement in its performance for the remaining quarters of the financial year.

“While there remain uncertainties, I am fairly confident that BCorp is now much better prepared to weather the future through the various initiatives that we have embarked on. Barring any unforeseen circumstances, we are expecting continued positive results and growth for BCorp in the second half of FY2022,” Jalil said.