KUALA LUMPUR (Nov 27): Boustead Holdings Bhd saw an 81% plunge in its net profit to RM18.2 million for its third quarter ended Sept 30, from RM97.5 million in the previous year’s corresponding quarter, bringing its earnings per share down sharply to 1.76 sen from 9.43 sen.

However, the diversified group’s revenue for the quarter was slightly lower at RM2.69 billion, compared to RM2.70 billion in the year before.

For the nine months to Sept 30, net profit declined 58% to RM109.2 million from RM258.6 million a year earlier, while cumulative revenue rose 2% to RM7.78 billion from RM7.62 billion.

In its filing with Bursa Malaysia, Boustead said its finance and investment division and its property division posted lower profit for the quarter, while its heavy industries division posted a loss.

Meanwhile, its plantation division saw higher profit due to higher crude palm oil (CPO) prices during the period, while lower expenses had boosted profit for its pharmaceutical division.

Going forward, Boustead expects its plantation division to be affected by the weakening of CPO prices and challenging operating conditions in Sabah and Sarawak.

“While CPO came under selling pressure arising from the non-fulfilment of biodiesel targets by Malaysia and Indonesia coupled with supply and demand factors, the government of Malaysia had achieved some success in containing the downward spiral in CPO prices with the implementation of zero export taxes for CPO.

“Nonetheless, competition from Indonesian palm oil as well as from other edible oils, and a possible hike in import duty on vegetable oils by India may dampen the prospects for CPO prices for the rest of the year,” it said.

For its pharmaceutical division, the group said logistics, distribution and related manufacturing activities will be its main growth driver. The group is also seeking to collaborate with multinational companies in the European region for contract manufacturing projects.

Boustead climbed four sen or 0.81% to close at RM4.96, bringing its market capitalisation to RM5.09 billion.