Boustead narrows 3Q net loss with boost in revenue

Boustead narrows 3Q net loss with boost in revenue
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KUALA LUMPUR (Nov 30): Boustead Holdings Bhd managed to narrow its net loss to RM51.8 million for the third quarter ended Sept 30, 2020 (3QFY20) from RM73.7 million in the preceding quarter, on the back of a higher revenue.  

The revenue stood at RM1.89 billion, 26.1% higher than RM1.50 billion in 2QFY20.  

On a year-on-year basis, the quarterly net loss is smaller by 66.6%, compared with RM155.0 million in 3QFY19. However, revenue was lower by 30.9% from RM2.73 billion. 

In a filing with Bursa Malaysia, Boustead said the reduced loss was primarily due to the impairment of property, plant and equipment and goodwill, amounting to RM161 million, which affected 3QFY19 earnings.  

For the cumulative nine-month period, Boustead saw its net loss widen to RM198.6 million compared with RM153.1 million in the same period last year, while revenue fell 27.4% to RM5.65 billion from RM7.79 billion.  

In a press statement, Boustead chairman Datuk Seri Mohamed Khaled Nordin said the business environment will remain challenging for the group. 

He said the Covid-19 resurgence will likely continue to impact the group’s business, particularly in the domestic-oriented and tourism-related segments.  

"Nevertheless, we are strongly focused on progressing our Transformation Plan to put the group on a stronger footing over the next three years, to move forward as a high-performing, sustainable and resilient organisation,” he added. 

Shares of Boustead rose 0.5 sen or 0.80% to close at 63 sen today, for a market capitalisation of RM1.28 billion.

S Kanagaraju