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The Sun
5 days ago
- Business
- The Sun
Berjaya Corp registers revenue of RM2.54 billion for third quarter of FY25
PETALING JAYA: Berjaya Corporation Bhd (BCorp) recorded revenue of RM2.54 billion and a pre-tax loss of RM8.88 million for the third quarter ended March 31, 2025 (Q3'25) compared to revenue of RM2.78 billion and a pre-tax profit of RM773.66 million in the corresponding quarter of the previous year. In Q3'25, the retail (non-food) business reported higher revenue, mainly driven by the strong performance of HR. Owen Plc. The increase was attributed to the higher sales volume in both the new and used car sectors. Sales from the new marque, Lotus, which is now represented by HR Owen, contributed to the revenue growth, and the launches of certain new models further supported the improved performance in the quarter. However, when translated into ringgit, the group's reporting currency, revenue growth was dampened by the unfavourable impact of foreign exchange effect. The non-food retail business segment reported a higher pre-tax profit, primarily attributable to HR Owen's improved performance, in line with the increased revenue achieved in the quarter under review. HR Owen's positive performance offset lower results from Cosway's operations, which were impacted by the closure of non-performing stores in certain countries. The retail (food) business reported lower revenue in Q3'25 due to a reduced number of Starbucks cafes in operation compared to the previous year's corresponding quarter, as well as the cessation of Papa John's Pizza operations in the Philippines. A higher pre-tax loss was reported by this business segment in the third quarter of FY25, due to the weaker performance of Kenny Rogers Roasters operations and additional preoperating costs incurred for the group's new overseas operations. The property segment reported a decline in revenue for Q3'25, due to the completion of The Tropika, Bukit Jalil project in the final quarter of the previous financial year. However, this decline was mitigated by higher sales of residential units from a local project. Additionally, the corresponding quarter of the previous year included sales from an overseas residential project. The hospitality segment reported higher revenue in the third quarter of the current financial year mainly due to an increase in overall average occupancy rate, but a higher pre-tax loss, from higher operating expenses. The services segment reported higher revenue in Q3'25, primarily driven by the gaming business operated by STM Lottery Sdn Bhd. STM Lottery recorded stronger revenue growth compared to the corresponding quarter of the previous year, given that the number of draws remained the same in both quarters. The improvement in sales was mainly attributed to an exceptional surge in the accumulated jackpot from the Supreme Toto 6/58 game. The higher revenue from STM Lottery offset lower revenue recorded by the managed telecommunications network services (MTNS) business, as well as the deconsolidation of Naza Enviro Holdings Sdn Bhd and Singapore Institute of Advanced Medicine Holdings Ltd (SIAMH). The higher pre-tax profit in the gaming business operated by STM Lottery was primarily driven by a combination of higher sales and lower prize payouts in the quarter under review. For the nine-month period ended March 31, 2025 (9M25), the group registered revenue of RM6.97 billion and a pre-tax loss of RM149.47 million compared to revenue of RM7.58 billion and pre-tax profit of RM751.65 million in the previous year's corresponding period. For the nine-month period of FY25, the retail segment's food retail business reported lower revenue and a pre-tax loss due to the prolonged impact of ongoing sentiment related to the Middle East conflict, which affected the market dynamics and influenced consumer spending patterns. However, higher revenue was reported by the non-food retail business, mainly due to higher revenue contributions from HR Owen, supported by optimistic demand from the used car sector, as well as contributions from the new marque, Lotus, which is now represented by HR Owen during the financial period. However, the unfavourable foreign exchange effect resulted in a more modest increase in revenue when translated into ringgit. The higher revenue from non-food retail business offset the lower revenue from Cosway's operations. The non-food retail business reported a pre-tax profit contributed by Cosway operations due to the closure of non-performing stores in certain countries and reduced operating costs. The improvement was further supported by a higher gross profit margin, driven by a more favourable product mix. The property segment reported lower revenue and a pre-tax loss in the nine-month period, primarily due to the completion of The Tropika, Bukit Jalil project. The decline was mitigated by the higher sales of residence units from a local project in the current period under review. Additionally, the corresponding period in the previous year had included sales of residential units from an overseas project. Meanwhile, the hospitality segment reported higher revenue and a higher pre-tax profit, mainly attributed to the higher overall occupancy rate. The service segment posted higher revenue contribution, primarily from STM Lottery despite fewer draws conducted in the nine-month period (123 draws versus 126 draws in the previous year's corresponding period). The growth was primarily driven by a surge in tickets sales of the Supreme Toto 6/58 game, following an exceptional increase in its accumulated jackpot. The higher revenue from STM Lottery offset the deconsolidation effects of NEH and SIAMH. The segment reported a higher pre-tax profit mainly due to higher revenue achieved coupled with a lower prize payout by STM Lottery. On future prospects, BCorp said Malaysia's economic growth is expected to be driven by strong domestic demand and the moderation of average inflation rate despite the uncertainties arising from geopolitical tensions and the inflationary tariffs being imposed by the US government. The group will monitor the prevailing global and local political development in the countries where the group has business operations. The performance of the domestic business segments of the group is expected to improve on the back of strong consumer spending and improvement in tourism-related activities. As for the gaming business, it is expected to continue its growth trajectory, in line with the ongoing popularity of its lotto and digit games to achieve commendable results. Taking account of the above and barring any unforeseen circumstances, BCorp directors are cautiously optimistic that the group's business operations will deliver a satisfactory performance for the remaining quarter of the financial year ending June 30 2025.
New Straits Times
30-05-2025
- Business
- New Straits Times
BCorp logs RM92.34mil loss, lower RM2.54bil revenue in Q3
KUALA LUMPUR: Berjaya Corp Bhd (BCorp) posted a net loss of RM92.34 million in the third quarter (Q3) ended March 31 2025 from a net profit of RM689.92 million a year ago. This was on the back of a revenue of RM2.54 billion, down from RM2.78 billion in the corresponding quarter of 2024. For nine months, BCorp logged RM348.87 million net loss from a net profit of RM580.23 million previously. Group revenue was lower at RM6.97 billion from RM7.58 billion a year go. No dividend was declared for the quarter. The group said its retail (non-food) business reported higher revenue in Q3, mainly driven by the strong performance of H.R. Owen Plc (HR Owen). This was attributed to the higher sales volume in both the new and used car sectors. Sales from the new marque, Lotus, which is now represented by HR Owen, contributed to the revenue growth, and the launches of certain new models further supported the improved performance in the current quarter. However, when translated into ringgit, the group's reporting currency, revenue growth was dampened by the unfavourable impact of foreign exchange effect. The non-food retail business segment reported a higher pre-tax profit, primarily attributable to HR Owen's improved performance, in line with the increased revenue achieved during the current quarter under review. HR Owen's positive results offset the lower results from Cosway's operations, which were impacted by the closure of non-performing stores in certain countries. Its retail (food) business reported a lower revenue due to a reduced number of Starbucks cafes in operation compared to the previous year's corresponding quarter, as well as the cessation of Papa John's Pizza operations in the Philippines during the current quarter. A higher pre-tax loss was reported by the business segment in the current quarter, due to the weaker performance of Kenny Rogers Roasters operations and additional pre-operating costs incurred for the group's new overseas operations. BCorp's property segment reported a decline in revenue for the current quarter, due to the completion of The Tropika, Bukit Jalil project in the final quarter of the previous financial year. However, this was mitigated by higher sales of residential units from a local project in the current quarter under review. Additionally, the corresponding quarter of the previous year included sales from an overseas residential project. BCorp expects the performance of its domestic business segments to improve on the back of strong consumer spending and improvement in tourism-related activities. As for the gaming business, it is expected to continue its growth trajectory, in line with the ongoing popularity of its Lotto and Digit games to achieve commendable results. "Taking account of the aforesaid and barring any unforeseen circumstances, the directors are cautiously optimistic that the group's business operations will deliver a satisfactory performance for the remaining quarter of the financial year ending June 30 2025," it said.
New Straits Times
27-05-2025
- Business
- New Straits Times
Critical Holdings charts path to Main Market amid strong earnings and sector growth
KUALA LUMPUR: Critical Holdings Bhd is preparing for a leap to the Main Market of Bursa Malaysia, buoyed by impressive third-quarter financial results for the period ended March 31, 2025 (3QFY25) and growing confidence from shareholders. Non-independent executive director and chief executive officer Tan Si Lim said the group's upward trajectory is supported by sustained demand across high-growth sectors, including semiconductors, electric vehicles (EVs), and data centres. He noted that national policies such as the National Semiconductor Strategy and targeted incentives from the Ministry of Investment, Trade and Industry are creating a favourable ecosystem for technology-driven companies like Critical Holdings. "At the same time, global developments, including the 90-day suspension of tariffs and supply chain realignments, are opening up new avenues for agile, solutions-driven providers," he said. Critical Holdings reported a net profit of RM19.6 million for the cumulative nine months ended 3QFY25, a 59.9 per cent surge from RM12.3 million recorded in the same period last year, according to its latest financial report. The strong performance was driven primarily by a substantial increase in revenue from its mechanical, electrical and process utilities engineering solutions segment. For the third quarter, the group posted a profit after tax of RM10.06 million, up from RM2.78 million in the previous year's corresponding quarter. Revenue for the quarter surged 49.3 per cent year-on-year to RM97.6 million, up from RM65.4 million, largely due to the strong delivery of engineering solutions for cleanrooms, plant plantrooms, and data centres. With an order book of RM282 million and recent regional expansion into Johor, the company is poised to tap into the fast-growing tech ecosystem in Malaysia. "We are seeing increased industrial activity and investor interest in key regions like Johor, Batu Kawan and Kulim, which points to a strengthening of Malaysia's semiconductor value chain. "With our strong capabilities and expanding reach, Critical Holdings is well-positioned to capture these opportunities and deliver sustainable value to our stakeholders," Lim added.
Sinar Daily
18-05-2025
- Business
- Sinar Daily
New rules needed to balance housing supply, affordability
KUALA LUMPUR - The government is proposing stricter policies for developers, requiring them to sell at least 15 per cent of completed residential units before approving new construction projects to reduce housing overhang. Senior lecturer at the Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, Dr Muhammad Iqmal Hisham Kamaruddin, said this measure aims to tackle the issue of unsold houses priced between RM300,000 and RM500,000 in the country while also preventing oversupply in the market. "To balance excessive supply, the government can enforce stricter regulations, such as making approvals for new residential development projects subject to the existing property overhang in a given area. "For example, if the number of unsold residential units exceeds 15 per cent in a particular area, the government should tighten approvals by not allowing new residential construction until the number of unsold units decreases,' he told Bernama. Houses priced between RM300,000 and RM500,000 have been recorded as the most common unsold properties in the country during the third quarter of 2024. According to the National Property Information Centre (NAPIC), these unsold units represent 31.9 per cent of the property market segment, comprising 7,003 units valued at RM2.78 billion in 2024. Muhammad Iqmal added that the government should also ensure that property prices in any area correspond to the affordability and average income of the local population. As an example, he said if the average household income in a state allows for purchasing property worth RM500,000, then houses should be offered at prices not exceeding RM500,000. He explained that the imbalance between household income and housing prices is the main reason for the high number of unsold houses priced between RM300,000 and RM500,000 in Malaysia. "The primary cause is that household income does not align with the housing price range. The median household income in Malaysia was around RM6,338 in 2023, while the latest Malaysian House Price Index (MHPI) indicates an average price of RM483,879. "In this situation, most houses priced between RM300,000 and RM500,000 require a minimum monthly commitment of RM1,500 to RM2,500, which means the household needs an income of at least RM4,000 per month. This represents over 60 per cent of the individual's monthly income,' he said. Additionally, Muhammad Iqmal pointed out that the ability to provide a deposit of at least 10 per cent of the property value is another factor. Meanwhile, he said the trend in average house prices, as shown by the MHPI, indicates an increase in property prices in Malaysia up to 2024 despite many units remaining unsold. "For example, the average house price in Malaysia was RM465,604 in 2023 and increased to RM483,879 in 2024. "In 2023, the average price of a single-storey terrace house was RM238,600, rising to RM251,500 in 2024, while for two-storey terrace houses, the average price increased from RM442,549 to RM466,506 during the same period,' he added. He noted that this contradicts economic theory, where an oversupply would typically lead to lower prices. "In this case, housing prices have not only failed to decrease but have continued to rise over time. The assumption that unsold houses older than five to ten years will drop in price is incorrect. "Therefore, existing homes need to be discounted and offered rebates to remain competitive with new housing developments,' he explained. Muhammad Iqmal added that an oversupply of unsold houses could also impact the macroeconomy, as developers who fail to sell enough units risk defaulting on loans, which could affect the financial and banking sectors. - BERNAMA
