PETALING JAYA: Berjaya Corporation Bhd (BCorp) registered a 14% increase in revenue to RM2.34 billion in the second quarter ended Dec 31, 2022 from RM2.06 billion in the corresponding quarter of the previous year on the back of higher contributions from most of the group’s business segments.
The group posted a higher profit from operations of RM139.76 million, which was mainly contributed by the services and the property segments. Nevertheless, the group reported a lower pre-tax profit of RM92.08 million in the quarter under review compared with a pre-tax profit of RM231.66 million in the preceding year’s corresponding quarter due to a substantial gain of RM161.10 million arising from the disposal of an associate company recorded in the previous year’s corresponding quarter.
During the quarter, the retail (food) segment recorded higher revenue mainly due to the opening of additional Starbucks cafe outlets. Nevertheless, the segment reported a lower pre-tax profit due to margin compression as a result of higher operating expenses.
The property segment reported higher revenue and pre-tax profit due to the higher property progress billings from its local project at The Tropika, Bukit Jalil and higher sales of overseas residence units.
Hospitality posted higher revenue mainly due to increased overall occupancy rates compared with the previous year’s corresponding quarter. The hospitality sector, however, reported a higher pre-tax loss as a result of unfavourable foreign exchange effects from its overseas hotels and higher operating expenses.
The services segment recorded higher revenue and pre-tax profit due to the higher revenue reported by the gaming operations operated by STM Lottery Sdn Bhd (formerly known as Sports Toto Malaysia Sdn Bhd).
However, the retail (non-food) segment reported lower revenue mainly due to the lower revenue from HR Owen Plc and the deconsolidation effect of the two motor trading subsidiaries. HR Owen’s financial performance was impacted by the unfavourable foreign exchange effect, resulting in lower revenue. In fact, HR Owen registered a slight increase in revenue in its reporting currency, sterling. As a result, the retail (non-food) segment reported lower pre-tax profit as HR Owen posted a pre-tax loss in the quarter compared with a pre-tax profit in the previous year’s corresponding quarter due to inflationary pressures and the interest rates hike in the United Kingdom.
Over the six-month period ended Dec 31, 2022, the group yielded better results with revenue and pre-tax profit hitting RM4.58 billion and RM199.67 million respectively compared with the corresponding period in the previous year which registered RM3.44 billion revenue and RM148.49 million pre-tax profit. The profit from operations in the six-month period jumped by a staggering 198% to RM293.28 million from RM98.30 million in the same period of the previous year.
On prospects, BCorp said while the recovery of the global and domestic economies is gaining momentum post-pandemic, the recent rise in global inflationary rates and geopolitical tensions have impacted the economic recovery.
Taking that into account and barring any unforeseen circumstances, the directors of BCorp are optimistic that the performance of the group’s businesses for the remaining quarters of the financial year ending June 30, 2023 to be satisfactory despite the pressure of the rising operating costs going forward.