BLand's 1Q net profit quadruples to RM37m

• The marginally higher revenue was thanks to STM Lottery's better topline, higher occupancy and room rates reported by its hotels division, and the disposal of land coupled with higher revenue from construction activities by its property development and investment division, which offset lower revenue reported by HR Owen.

KUALA LUMPUR (Nov 28): Berjaya Land Bhd's (BLand) net profit for the first quarter ended Sept 30, 2023 (1QFY2024) rose more than four-fold to RM36.87 million from RM8.45 million a year ago, its Bursa Malaysia filing on Tuesday showed.

The improved earnings were thanks to a 17.61% growth in revenue to RM2 billion from RM1.71 billion in 1QFY2023, combined with higher investment related items arising from a reversal of impairment on amounts owed by an associate company and a gain on disposal of a foreign hotel business.

Earnings per share rose to 0.75 sen, from 0.17 sen in 1QFY2023.

BLand — which is involved in number forecast operations (NFOs), auto retailing and provision of aftersales services, property development and investment, and the operations of hotels and resorts — said the higher revenue was due to the improved toplines of STM Lottery Sdn Bhd, HR Owen plc, increased average room rates, the sale of a vacant parcel of land, and higher revenue from construction activities carried out by the property development and investment division.

However, quarter-on-quarter, BLand's net profit shrank 28.98% from RM51.91 million while its revenue rose 3.33% from RM1.94 billion.

The marginally higher revenue was thanks to STM Lottery's better topline, higher occupancy and room rates reported by its hotels division, and the disposal of land coupled with higher revenue from construction activities by its property development and investment division, which offset lower revenue reported by HR Owen.

"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.

"The NFO business segment of the group is cognisant of the concerns on the local political developments in the northern states of Peninsular Malaysia with closures of outlets in the state of Kedah and Perlis which could lead to the proliferation of illegal NFO activities in the underserved areas.

"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 activities.

"The group will monitor the prevailing global and local political development in the countries where the group has business operations. Taking into account of the aforesaid and barring any unforeseen circumstances, the directors are cautiously optimistic that the performance of the business operations of the group for the remaining quarters of the financial year ending June 30, 2024 to be satisfactory," it said.

BLand closed unchanged at 27 sen, for a market capitalisation of RM1.33 billion.

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