This article first appeared in The Edge Financial Daily on March 29, 2019

KUALA LUMPUR: Berjaya Corp Bhd (BCorp) has narrowed its net loss to RM62.9 million in the third quarter ended Jan 31, 2019 (3QFY19), versus RM92.5 million a year ago, on improved contribution from its marketing of consumer products and services segment.

The company also attributed the better results to the absence of substantial foreign exchange losses and a loss on disposal of a subsidiary company — both of which were seen in the previous corresponding quarter. Consequently, loss per share shrank to 1.09 sen from 1.6 sen per share last year, its stock exchange filing yesterday showed.

Revenue, however, slid 7.39% to RM2.01 billion from RM2.17 billion previously, dragged by lower contributions from the marketing of consumer products and services segment, because of intense competition in the retail distribution business, the lack of major product launches, and fewer outlets due to the closure of non-performing outlets. The property segment also reported lower revenue, following lower progress billings and lower sales from high-end projects.

Nevertheless, the group recorded a stronger quarterly performance, as its marketing of consumer products and services segment benefited from lower operating expenses recorded by the retail distribution business, while its motor distribution business also reported better earnings, thanks to higher sales in the new car sector. Its Starbucks operations, together with its Kenny Rogers Roasters operations in Malaysia, also recorded improved contributions.

For the cumulative 9MFY19, its net loss shrank to RM98.88 million or 1.66 sen per share, compared with RM281.88 million or 4.87 sen per share a year ago, despite revenue slipping 6.29% to RM6.14 billion from RM6.56 billion. The improved cumulative earnings were due to higher operating profit and a gain from the disposal of DSG Holdings Ltd in 1QFY19.

Given the prevailing economic conditions and global financial outlook, BCorp said its directors are of the view that the group’s operating environment for the remaining quarter will be “challenging”.

With the completion of the disposal of  TPC Nghi Tam Village Ltd on March 1, 2019, BCorp said the group is expected to recognise an exceptional gain in the final quarter of FY19.

Shares in BCorp closed unchanged at 27 sen yesterday, giving it a market capitalisation of RM1.4 billion.