Tuesday February 28, 2012

Boustead’s full year net profit up 14% to RM611mil

KUALA LUMPUR: Boustead Holdings Bhd recorded a lower net profit for its fourth quarter ended Dec 31, 2011 by 7.9% to RM192.3mil year-on-year (yoy) despite higher revenue.

Revenue for the quarter under review was at RM2.55bil from RM1.69bil a year ago.

Nevertheless, for the full year, Boustead net profit went up 13.6% to RM610.6mil on the back of RM8.55bil revenue that reflected a 38.3% jump from 2010.

The growth was attributable to the positive performance of all its business division with its plantation section leading the way due to robust commodity prices.

Earnings per share for the full year increased to 59.0 sen representing a 13% increase, compared with 52.3 sen recorded last year.

Deputy chairman and group managing director Datuk Lodin Wok Kamaruddin said almost all their divisions performed exceedingly well with plantations leading the way, due to robust commodity prices.

Boustead will pay a dividend of 39 sen per share for its financial year.

To date, dividends totalling 30 sen has been paid to shareholders.

The remaining nine sen would be paid on March 30 to shareholders on the register as at March 16.

“We are glad to note that out total dividend of 39 sen has far surpassed the minimum payout ratio in our dividend policy of 70%, given that the total payout ratio for the year under review was 94% of our audited consolidated net profit taking into account appropriate adjustments for non cash flow items and unrealised income which may arise from fair value adjustments,” he said in statement yesterday.

For the segmental performances in 2011, the plantation division had proven to be one of the group’s strongest contributors yet again, delivering a strong profit of RM299mil compared with RM183mil in 2010.

The division also benefited from a gain from the disposal of plantations amounting to RM95mil.

The average crude palm oil price realised was RM3,272 per tonne, an increase of 25% over previous year’s average of RM2,622 per tonne.

The property division registered a 52% increase in profit to RM211mil compared with RM139mil recorded last year due fair value gain and increased rental income.

The trading and manufacturing division recorded a profit of RM113mil, reflecting a 20% jump from last year due to strong earnings derived from Boustead Petroleum Marketing Sdn Bhd that recorded increased volumes from all product lines, stronger operating margins that were achieved through cost optimisation and improved operational efficiency.

The pharmaceutical division, the latest addition to group last year, performed well registering a total profit of RM68mil out of which RM40mil was derived from Idaman Pharma Manufacturing Sdn Bhd.

The finance and investment division registered a profit of RM45mil during the year under review compared with RM144mil in the previous financial year.

The previous year’s figures included gains from the disposal of BH Insurance Bhd amounting to RM75mi.

Boustead said the results for the year under review were also impacted by interest cost from the acquisitions of Pharmaniaga Bhd and MHS Aviation.

Another strong contributor to this division was Affin Holdings Bhd bringing in a record profit of RM106mil to the group.

The heavy industries division reported a break-even result compared with 2010 profit of RM146mil due to higher finance charges and the turbulent global economic climate that impacted the division.

Going forward, this division was expected to perform well given that the construction of the second generation patrol vessels would be undertaken in the coming financial year, the group added.

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