Boustead Holdings 1Q net profit up 24.3% to RM112.2m

KUALA LUMPUR: Boustead Holdings Bhd earnings rose 24.3% to RM112.20 million in the first quarter ended March 31, 2011 from RM90.20 million a year ago, boosted by the plantations division.

It said on Friday, May 27 revenue rose about 2% to RM1.58 billion from RM1.55 billion while earnings per share were 11.93 sen compared with 9.75 sen. It declared dividend of eight sen per share. Profit before tax was 25% higher at RM168.2 million than the RM134.6 million a year ago.

On the revenue performance, it said plantation revenue increased by 5%, on stronger palm product prices which more than offset the lower fresh fruit bunches (FFB) crop.

The plantation division accounted for pre-tax profit of RM99 million (2010: RM62.3 million). During the period, the division achieved an average palm oil price of RM3,541 per tonne, up RM1,042 or 42% against last year's average of RM2,499 The cumulative FFB crop totalling 253,586 tonnes was 17% lower due to the prolonged wet weather.

As for its heavy industries division, it contributed a pre-tax profit of RM7.2 million, as compared with last year's profit of RM23.4 million due to lower progress billings.

The property division's pre-tax profit of RM12.2 million was 94% higher than last year mainly on improved contribution from property development in tandem with the progress of construction.

The new pharmaceutical division was in the black with pre-tax profit of RM9.1 million versus a loss of RM1.9 million a year ago, mainly due to higher sales revenue while margins have also improved.

The finance and investment division posted a cumulative pre-tax profit of RM11.9 million, as compared with the RM19.7 million a year ago, largely on higher interest expense. The manufacturing and trading division's pre-tax profit for the current quarter was higher at RM28.8 million (2010: RM24.8 million) as the division's main contributor BH Petrol had achieved a higher sales volume and stockholding gains.

Looking for properties to buy or rent? With >150,000 exclusive listings, including undervalued properties, from vetted Pro Agents, you can now easily find the right property on Malaysia's leading property portal EdgeProp! You can also get free past transacted data and use our proprietary Edge Reference Price tool, to make an informed purchase.