KUALA LUMPUR (Aug 27): Boustead Holdings Bhd booked a net loss of RM73.7 million or 3.64 sen per share for the second quarter ended June 30, 2020 (2QFY20), as Covid-19 brought more pain than gain for its business segments.

The net loss was flattish when compared with the RM73.1 million net loss reported in 1QFY20, while revenue fell 33.69% to RM1.5 billion from RM2.26 billion.

The flattish bottom line comparison was supported by growth in its pharmaceutical business and plantation, while losses widened in three segments — property and industrial; heavy industries; and trading, finance and investment.

The pandemic proved a big speed bump for Boustead, which was supposed to be on a path to recovery, following the RM1.15 billion kitchen sinking exercise in 4QFY19 to clean its books.

On a year-on-year basis, Boustead’s swing to loss in 2QFY20 compares with a net profit of RM24.3 million and earnings per share of 1.2 sen in 2QFY19, which was buoyed by a net gain on disposal of its plantation assets at the time.

Revenue, meanwhile, was down 41.07% when compared with RM2.54 billion reported in 2QFY20, again as all segments slipped except for plantation and pharmaceutical divisions.

For the six-month period ended June 30 (6MFY20), Boustead booked a net loss of RM146.7 million from a net profit of RM1.9 million a year earlier, while revenue fell 25.55% to RM3.76 billion from RM5.05 billion.

In a statement, Boustead chairman Datuk Seri Mohamed Khaled Nordin said the group had been hit mostly in the domestic-oriented and tourism-related segments.

“However, on an encouraging note, towards the end of the second quarter, all of the group’s businesses were able to resume.

“As the nation is currently in the Recovery MCO phase, the group is optimistic that the situation will see a gradual improvement and we will continue to monitor ongoing developments,” Khaled said.

He added: “Concurrently, we remain focused on our three-year Transformation Plan, EDGE20, which aims to transform the group into a high-performing and sustainable organisation. This will allow us to navigate the current challenges and set a course for the group to embark on brighter prospects over the long-term.”

Shares of Boustead last traded down 1.5 sen or 2.24% at 65.5 sen, valuing the group at RM1.33 billion. 

Edited by S Kanagaraju

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