KUALA LUMPUR (June 18): Loss-making Malayan United Industries Bhd (MUI) saw its net loss widen to RM138.47 million in the third quarter ended March 31, 2020 (3QFY20), seven times the RM19.63 million it recorded a year earlier. Quarterly revenue was down 32.6% to RM59.95 million from RM88.92 million previously.

According to MUI, the Movement Control Order (MCO), which was implemented on March 18, has further affected the group’s financial performance, the company said in its unaudited results filing with Bursa Malaysia today.

The firm, which owns a 98.21% stake in Metrojaya Bhd, said the latter’s department store, Metrojaya, suffered an RM11.8 million decline in revenue during the quarter under review, due to lower sales and store closures.

The retail division also incurred losses of RM111.8 million from the derecognition of an associate in the UK, namely Laura Ashley Holdings plc, as a result of the appointment of administrators. This widened the segment’s loss before tax (LBT) to RM116.44 million from LBT of RM7.64 million in 3QFY19.

Meanwhile, MUI’s hotel division raked in RM5.72 million in profit before tax (PBT) compared with LBT of RM1.18 million a year ago, due to a one-off RM16 million gain on disposal of a land in the UK. Excluding the one-off gain, the hotel division recorded an LBT of RM10.3 million.

The group said its property division also recorded profit, albeit 32.97% lower at RM2.54 million versus RM3.79 million previously. This was due to lower revenue recognition from the group’s Phases E7-1 and E7-2 of the Bandar Springhill project in Lukut, Negeri Sembilan.

MUI’s group performance was also dragged by its food and others divisions due to, among others, Covid-19-driven lockdowns, higher administrative expenses and the loss on foreign exchange translations on intragroup balances.

For the nine-month period ended March 31, 2020 (9MFY20), the firm’s net loss grew to RM162.91, about eight times the RM20.43 million it reported for 9MFY19. Revenue for the period dropped 12.38% to RM265.28 million from RM302.76 million.

On prospects, the group said its focus now is on recovery through various strategies and plans, including reconfiguring its business models, moving into e-commerce platforms and seeking new collaborations for revenue and earnings growth, to improve the performance of its retailing business.

It also expects a slow but gradual recovery for its hotel businesses both in Malaysia and the UK, “depending on how restrictions are eased”. MUI is mapping out its recovery and marketing strategies for the post-crisis period.