Berjaya Corp’s property and hospitality revenue rise, but weaker retail and services widen 3Q loss

PETALING JAYA (May 29): Berjaya Corp Bhd’s (BCorp) property and hospitality segments delivered higher revenue in the third quarter ended March 31, 2026 (3QFY2026), supported by progress billings and stronger occupancy, but weaker contributions from its non-food retail and services businesses saw the group’s net loss widen.

It said in its Bursa filing that the property segment reported higher revenue for the quarter, driven by progress billings from Residensi Oak in Bukit Jalil and Pangsapuri Azalea in Subang Heights, partly offset by lower sales of residential units from a local project. 

The hospitality segment also posted higher revenue, mainly attributable to higher overall occupancy rates during the quarter.

Despite these gains, group revenue fell 14% to RM2.19 billion from RM2.54 billion in 3QFY2025, as lower contributions from the non-food retail and services segments more than offset the improvement in property and hospitality. 

BCorp registered a pre-tax loss of RM118.33 million versus a pre-tax loss of RM8.88 million a year earlier, while net loss attributable to shareholders widened to RM176.24 million from RM92.34 million, translating into a basic loss per share of 3.01 sen compared with 1.58 sen previously.

BCorp said the non-food retail business, driven largely by UK-based luxury automotive unit H.R. Owen Plc, recorded lower sales volumes in both new and used cars amid longer vehicle product life cycles, model transition gaps and unfavourable foreign exchange translation effects. 

The segment’s pre-tax profit declined in line with the revenue reduction and higher statutory employment costs following the implementation of new United Kingdom labour regulations effective April 2025.

Meanwhile, the food retail business reported improved revenue, supported by contributions from the group’s overseas operations and higher revenue from Starbucks Malaysia despite a reduced number of operating stores. This helped offset lower revenue from Kenny Rogers Roasters operations in Malaysia due to the continued closure of non-performing outlets. 

The segment also recorded a lower pre-tax loss, which BCorp said was due to improved profit margins from cost-saving initiatives, store rationalisation measures, and lower depreciation and amortisation charges following impairment losses recognised in the previous financial year.

The services segment posted lower revenue mainly due to reduced contributions from STM Lottery Sdn Bhd, as the previous year’s corresponding quarter had benefitted from stronger sales driven by higher accumulated jackpot prizes from the Supreme Toto 6/58 game and one additional draw. 

Revenue from the telecommunications network services (MTNS) business also declined as certain projects neared completion or had been completed in the previous financial year. The segment’s lower pre-tax profit was broadly in line with the revenue decline.

For the nine months ended March 31, 2026, BCorp’s revenue eased to RM6.71 billion from RM6.97 billion a year earlier, while pre-tax loss narrowed to RM81.72 million from RM149.47 million. Net loss attributable to shareholders stood at RM231.34 million versus RM348.87 million in the previous corresponding period.

As at March 31, 2026, BCorp’s total assets stood at RM21.89 billion, down from RM22.48 billion as at June 30, 2025. Equity attributable to owners of the parent amounted to RM5.99 billion, with net assets per share attributable to ordinary equity holders at RM1.01 compared with RM1.05 previously. 

Total borrowings stood at RM6.87 billion, comprising RM2.83 billion in short-term borrowings and RM4.05 billion in long-term borrowings. The board did not declare any dividend for the quarter.

In a separate filing, BCorp said it remains cautiously optimistic about its outlook for the remaining quarter of FY2026, citing expectations of continued domestic consumer spending and tourism activity, while monitoring global geopolitical developments and tariff-related uncertainties.

The group also announced the appointment of Rayvin Tan Yeong Sheik, 46, as executive director effective May 28, 2026. Rayvin previously served as executive director of BCorp from 2005 to 2015 and currently oversees the group’s North Asia operations and Japan expansion initiatives.

Separately, Tan Sri Vincent Tan Chee Yioun disclosed disposals of BCorp shares during the closed period on May 28, 2026, involving direct and deemed interests at 25 sen per share.

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