KUALA LUMPUR (Aug 27): Boustead Holdings Bhd significantly narrowed its net loss in the second quarter ended June 30, 2021 (2QFY21) to RM7.3 million, from RM73.7 million a year ago, as revenue jumped 71.96%.

Revenue rose to RM2.58 billion from RM1.5 billion for 2QFY20.

Loss per share shrank to 0.36 sen from 3.64 sen as a result, its bourse filing showed.

Boustead’s plantation division recorded a higher revenue of RM242.8 million from RM171.9 million on higher fresh fruit bunch (FFB) production and selling prices.

Heavy industries revenue rose to RM96.4 million from RM61.3 million on the back of a higher littoral mission ship (LMS) contribution during the quarter.

The pharmaceutical segment also generated a higher revenue of RM1.18 billion, compared with RM793.5 million for 1QFY21, on higher sales of Sinovac Covid-19 vaccine doses to the government and strong demand from the concession business.

Meanwhile, the trading, finance and investment segment’s revenue stood at RM984.4 million, from RM931 million for the preceding quarter, driven by better revenue from Boustead Petroleum Marketing (BPM) as a result of higher average fuel prices.

“Nevertheless, the contribution from our associate Affin Bank Bhd was higher in 2QFY21, primarily attributed to higher net interest income, lower allowances for impairment losses as well as higher net fee and commission income,” said Boustead.

On a quarterly basis, however, the diversified group sank into the red compared to a RM43.1 million net profit for 1QFY21, mainly due to the recognition of a one-off gain on disposal of Royale Chulan Bukit Bintang (RCBB).

Meanwhile, quarterly revenue grew 23.55% to RM2.58 billion from RM2.09 billion, boosted by the plantation, heavy industries, pharmaceutical as well as trading, finance and investment segments.

For the first half ended June 30, 2021 (1HFY21), Boustead returned to the black after six consecutive quarters of losses with a RM35.8 million net profit versus a net loss of RM146.7 million a year ago.

First-half revenue also rose 24.06% to RM4.66 billion from RM3.76 billion.

In a separate statement, Boustead group managing director Datuk Seri Mohammed Shazalli Ramly said substantial challenges and uncertainties posed by the ongoing Covid-19 pandemic had decelerated the implementation of various initiatives under the "Reinventing Boustead" strategy.

“The prolonged pandemic has dampened the group from achieving a faster recovery since we have to put on hold most of the activities due to restrictions of movement. This is inevitable as these initiatives mainly involving active participation on the ground with the group’s core divisions.

“Despite these challenges, I am pleased that the group started the new fiscal year by delivering a healthy quarter with a return to the black after six consecutive quarters of losses. For the second quarter, our robust financial performance continued the momentum to reflect our ongoing commitment to the 'Reinventing Boustead' strategy of setting the group on a stronger footing.

"We are now at a time where the use of technology in enhancing performance has never been more important. Digital technologies, renewable energy and the Internet of things are among the new initiatives that we will continue to integrate into our business operations across all divisions for sustainability,” he said.

At the time of writing today, Boustead was unchanged at 62.5 sen, with some 2.8 million shares traded, giving the company a market capitalisation of RM1.26 billion.