Provision for impairment of RM155m drags BLand into loss in 2QFY18

KUALA LUMPUR (Dec 21): Berjaya Land Bhd (BLand), the controlling shareholder of Berjaya Sports Toto Bhd, posted a net loss of RM99.92 million in the second financial quarter ended Oct 31, 2017 (2QFY18) compared with a net profit of RM180.47 million in the previous corresponding period. The losses were caused by the provision for impairment of balance sales proceeds from the sale of Berjaya (China) Great Mall Co Ltd (GMOC).

BLand said without the provision for impairment of balance sales proceeds from the sale of GMOC amounting to RM155.08 million, the property developer would have reported a pre-tax profit of RM59.18 million in 2QFY18.

The group’s earnings performance was also due to lower profit margins earned on new car sales by its 98.38%-owned HR Owen plc.Its associate companies, mainly Berjaya Kyoto Development (S) Pte Ltd, which saw no sale of residences, also recorded losses, during the quarter under review.

In a filing with Bursa Malaysia yesterday, BLand said quarterly revenue dipped marginally to RM1.61 billion from RM1.62 billion a year ago. For the cumulative six months period of FY18, BLand posted a RM88.39 million net loss versus a net profit of RM153.23 million last year, while revenue inched up 1.43% to RM3.22 billion from RM3.17 billion a year ago.

This article first appeared in The Edge Financial Daily, on Dec 21, 2017.

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