KUALA LUMPUR: Berjaya Corp Bhd’s pre-tax profit plunged to RM71.61 million in the first quarter ended July 31, 2016 from RM183.84 in the same period last year.
In a filing to Bursa Malaysia, the group said the lower pre-tax profit was due to losses from the retail business and lower share of associated companies’ results following the cessation of equity accounting for Berjaya Auto Bhd’s results and share of higher losses from certain associated companies. Revenue, however, rose to RM2.22 billion from RM2.14 billion previously, mainly due to higher revenue reported by the group’s various business segments.
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“The restaurant ad cafe business reported a higher revenue for the current quarter, mainly due to higher sales recorded by existing cafes, as well as additional cafes operating in the current quarter,” Berjaya Corp said. The higher revenue from property investment and development business was mainly due to strong sales from a property project in China.
While the hotels and resorts business reported a higher revenue, mainly due to higher overall occupancy and average room rates, the group said. Toto Bhd reported a higher revenue, mainly from strong sales of the 4D Jackpot game due to the high jackpot.
The consumer products and services segment reported lower revenue as the retail distribution business was affected by unfavourable economic conditions in the Greater China markets.
On future prospects, given the prevailing economic conditions and financial outlook, the directors were of the view that the group’s operating environment would be very challenging going forward.
