registered a revenue of RM2.20 billion in the current quarter ended 31 December 2024, closely aligned to a revenue of RM2.23 billion reported in the same quarter of the previous year. Notably, the Group made significant progress by reducing its pre-tax loss to RM39.02 million in the current quarter under review compared to a pre-tax loss of RM119.30 million reported in the previous year corresponding quarter.
PRESS RELEASE
BERJAYA CORPORATION BERHAD REPORTS RM2.20 BILLION REVENUE FOR Q2FY2025 ENDED 31 DECEMBER 2024
Date: 27 February 2025
Venue: Kuala Lumpur
For the 2nd Quarter ended 31 December 2024
Berjaya Corporation Berhad (“BCorp”) registered a revenue of RM2.20 billion in the current quarter ended 31 December 2024, closely aligned to a revenue of RM2.23 billion reported in the same quarter of the previous year. Notably, the Group made significant progress by reducing its pre-tax loss to RM39.02 million in the current quarter under review compared to a pre-tax loss of RM119.30 million reported in the previous year corresponding quarter.
Berjaya Corporation Berhad (“BCorp”) registered a revenue of RM2.20 billion in the current quarter ended 31 December 2024, closely aligned to a revenue of RM2.23 billion reported in the same quarter of the previous year. Notably, the Group made significant progress by reducing its pre-tax loss to RM39.02 million in the current quarter under review compared to a pre-tax loss of RM119.30 million reported in the previous year corresponding quarter.
The performance of the Group’s result in the quarter under review was contributed by the
following business segments:
- Retail (Non-Food) business reported higher revenue, largely driven by the strong
performance of H.R. Owen Plc (“HR Owen”). This growth was fuelled by strong demand
in the used car sector, which resulted in both higher sales volume and increase in average
selling prices. Furthermore, sales were further boosted by the introduction of the Lotus
marque, now represented by HR Owen in London. The higher revenue from HR Owen
offset the lower revenue from Cosway operations, as a result of the closure of non
performing stores in certain countries.
The non-food retail business also reported a pre-tax profit for the current quarter, mainly driven by Cosway’s profitability despite registering a decline in revenue. This was attributed to a strategic cost rationalisation exercise. Additionally, HR Owen reported improved results, with a reduction in losses reflecting revenue growth amidst the challenging economic environment in the United Kingdom (“UK”).
The food retail business on the other hand, posted a lower revenue due to the prolonged impact of ongoing sentiments surrounding the Middle East conflict, which has contributed to a higher pre-tax loss in the current quarter. - Property segment reported a decline in revenue and a pre-tax loss for the current quarter, mainly due to the completion of The Tropika Bukit Jalil project in the final quarter of the previous financial year. Nevertheless, this decline was mitigated by increased sales of residence units from a local project in the current quarter under review.
- Hospitality segment reported a higher revenue and pre-tax profit, primarily due to the improved overall occupancy rates during the current quarter compared to the corresponding quarter of the previous year.
- Services segment posted a higher revenue in the current quarter, driven by the gaming
business operated by STM Lottery Sdn Bhd (“STM Lottery”) with improvements in average
sales per draw and higher accumulated jackpot prizes in Lotto games, despite having one
fewer draw in the current quarter (41 draws versus 42 draws in the last year corresponding
quarter).
The segment reported a higher pre-tax profit primarily attributed to a combination of higher sales and lower prize payout, as well as the deconsolidation effect of the Singapore Institute of Advanced Medicine Holdings Ltd (“SIAMH”).
For the 6-month period ended 31 December 2024
The Group registered a revenue of RM4.43 billion and incurred a pre-tax loss of RM140.60 million for the financial period ended 31 December 2024. This compares to the previous year’s revenue of RM4.80 billion and a pre-tax loss of RM22.0 million.
The Group registered a revenue of RM4.43 billion and incurred a pre-tax loss of RM140.60 million for the financial period ended 31 December 2024. This compares to the previous year’s revenue of RM4.80 billion and a pre-tax loss of RM22.0 million.
The Group’s performance during the 6-month period under review was contributed by the
following business segments:
- Retail (Non-Food) segment’s non-food retail business reported a lower revenue due to reduced
revenue contributions from Cosway operations, following the closure of non-performing
stores in certain countries. Nonetheless, this was mitigated by higher revenue reported by
HR Owen, driven by strong demand in the used car sector, along with a favourable mix of
sales volume and higher average selling prices. Moreover, the introduction of the Lotus
marque and the commencement of deliveries of certain new models during the current
reporting period contributed to the increase in revenue. However, due to unfavourable
foreign exchange effects, the revenue reported a slight decline when converted to Ringgit
Malaysia.
The non-food retail business reported improved results for the current period, mainly driven by Cosway’s profitability, which was attributed to a strategic cost rationalisation exercise. However, this offset the higher pre-tax losses from HR Owen which incurred increased operating costs due to the introduction of a new marque, as well as weaker new car sales caused by the under performance of certain existing brands. In addition, the impact of the UK interest rate hike during the period under review also contributed to the losses.
The food retail business reported a lower revenue and a pre-tax loss due to the same reasons mentioned in the current quarter under review. - Property segment reported lower revenue and pre-tax loss in the current period, mainly due to the completion of The Tropika Bukit Jalil project. However, the losses was mitigated by higher sales units from a local project in the current period under review. Additionally, the corresponding period includes sales or residential units from an overseas project.
- Hospitality segment reported a higher revenue and higher pre-tax profit, mainly due to higher overall occupancy rates during the current period under review.
- Services segment reported a lower revenue, primarily due to the deconsolidation of Berjaya Enviro Holdings Sdn Bhd and SIAMH, along with lower sales from STM Lottery, which resulting from a lower number of draws conducted (81 draws versus 84 draws in the corresponding period of the previous year). Despite this, the gaming business posted higher pre-tax profit, mainly due to a lower prize payout by STM Lottery, as well as the deconsolidation of SIAMH. The segment reported a higher pre-tax profit primarily attributed to a combination of higher sales and lower prize payout, as well as the deconsolidation effect of the Singapore Institute of Advanced Medicine Holdings Ltd (“SIAMH”).
Future Prospects
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 ongoing geo-political tensions. The Group will keep a close watch on the current global and local political developments in the countries where it operates.
The performance of the domestic business segments of the Group is expected to improve, supported by strong consumer spending and improvement in tourism activities. As for the gaming business, it is expected to maintain its growth trajectory, in line with the ongoing popularity of its Lotto and Digit games to achieve commendable results.
Considering these factors and barring any unforeseen circumstances, the Directors remain cautiously optimistic that the performance of the business operations of the Group for the remaining quarters of the financial year ending 30 June 2025 to be satisfactory.
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 ongoing geo-political tensions. The Group will keep a close watch on the current global and local political developments in the countries where it operates.
The performance of the domestic business segments of the Group is expected to improve, supported by strong consumer spending and improvement in tourism activities. As for the gaming business, it is expected to maintain its growth trajectory, in line with the ongoing popularity of its Lotto and Digit games to achieve commendable results.
Considering these factors and barring any unforeseen circumstances, the Directors remain cautiously optimistic that the performance of the business operations of the Group for the remaining quarters of the financial year ending 30 June 2025 to be satisfactory.
For media enquiries, please contact Group Corporate Communications at corpcom@berjaya.com.my.