Berjaya Corporation - Berjaya Corporation Berhad

Berjaya Corporation Berhad (“BCorp”) posted a revenue of RM2.37 billion and incurred a pre-tax loss of RM270.0 million in the current quarter ended 30 June 2025. The loss was primarily due to non-cash impairments in compliance with applicable accounting standards. In comparison, the Group recorded a revenue of RM2.46 billion and a pre-tax loss of RM96.28 million reported in the corresponding quarter of the previous year.

PRESS RELEASE

BCORP REGISTERS A REVENUE OF RM9.34 BILLION FOR FINANCIAL YEAR ENDED 30 JUNE 2025

Date: 29 August 2025

Venue: Kuala Lumpur

For the 4th Quarter ended 30 June 2025

Berjaya Corporation Berhad (“BCorp”) posted a revenue of RM2.37 billion and incurred a pre-tax loss of RM270.0 million in the current quarter ended 30 June 2025. The loss was primarily due to non-cash impairments in compliance with applicable accounting standards. In comparison, the Group recorded a revenue of RM2.46 billion and a pre-tax loss of RM96.28 million reported in the corresponding quarter of the previous year.

The performance of the Group’s result in the current quarter under review was contributed by the following business segments:

Hospitality segment reported a higher revenue and pre-tax profit, mainly due to the higher overall occupancy rate in the current quarter under review.

Retail’s non-food segment reported improved results from Cosway’s operations, supported by a higher gross profit margin driven by a more favourable product mix and reduced operating costs. However, revenue from Cosway declined due to the closure of non-performing stores in certain countries in the current quarter under review.

H.R. Owen Plc (“HR Owen”) reported lower revenue, primarily driven by lower sales volume in the new car sector. The drop was largely due to the result of the changes in the distribution structure of certain manufacturers and the product life cycle of certain car models. The lower pre-tax profit reported in the non-food segment was contributed by HR Owen’s lower revenue and higher operating expenses incurred in relation to brand positioning efforts.

The lower revenue reported by the food retail business was mainly due to a reduced number of Starbucks cafes in operation compared to the corresponding quarter of the previous year. The higher pre-tax loss in the current quarter reported by the food retail business was mainly due to the non-cash impairment of property, plant, equipment and right-of-use assets of the Group’s non-performing stores, in Starbucks Malaysia’s operations.

Property segment reported a lower pre-tax loss in the current quarter, contributed by increased sales of residential units from a local project and the reversal of an over provision of operating expenses. This was partially offset by the lower contribution of progress billings following the completion of The Tropika, Bukit Jalil towards the end of the previous financial year.

Services segment reported a higher revenue from STM Lottery Sdn Bhd (“STM Lottery”), but recorded lower overall revenue in the current quarter, primarily due to the reduced contribution from the telecommunications network services (“MTNS”) business. The MTNS business reported a pre-tax loss due to lower revenue and impairment of contract assets reported in the current quarter.

The stockbroking business also recorded a drop in the revenue, mainly attributed to lower brokerage income as a result of reduction in retail participation in the stock market during the current quarter under review. The asset and fund management business registered a lower revenue arising from lower volume in fund management income.

Both the stockbroking and the asset and fund management businesses recorded a pre tax loss due to lower brokerage income and higher operating costs incurred; as well as a decrease in fund management income and also higher operating costs incurred respectively in the current quarter under review.

The aforesaid declines were partially mitigated by higher revenue contribution from STM primarily driven by the higher accumulated prizes from its Toto 4D Jackpot game, given that the number of draws remained the same in both quarters. However, STM Lottery reported a lower pre-tax profit due to higher prize payout and higher operating expenses, including corporate social responsibility sponsorship incurred during the current quarter under review.

Overall, the Group recorded an increase in profit from operations to RM89.84 million in the current quarter under review, compared to RM66.69 million in the corresponding quarter. The pre-tax loss was primarily attributable to higher net investment related expenses, including non-cash impairments totalling RM323.16 million on non-performing assets, in accordance with applicable accounting standards. These impairments may be subject to reversal in the future should conditions improve.

For the financial year ended 30 June 2025

The Group registered a revenue of RM9.34 billion for the financial year ended 30 June 2025, as compared to a revenue of RM10.09 billion reported in the previous financial year. The decrease of the group revenue was mainly due to lower contributions from most segments:

Retail‘s non-food segment sees higher revenue reported by HR Owen in the current financial year, was driven by growth in the used car sector and the introduction of the new marque, Lotus. However, when translated into Ringgit Malaysia, the revenue reflected a decline, primarily due to the impact of unfavourable foreign exchange effect. Closure of non-performing Cosway’s stores in certain countries also resulted in reduced contributions from Cosway’s operations.

The food segment’s lower revenue was a consequence from the prolonged impact of the ongoing sentiment related to the Middle East conflict, which affected market dynamics and influenced customer spending patterns during the financial year under review. The cessation of Papa John’s Pizza operations in the Philippines during the current financial year also contributed to the decline.

Property segment reported higher sales of residential units from a local project, but had a lower revenue, primarily due to the completion of The Tropika, Bukit Jalil project towards the end of the previous financial year. Additionally, the previous financial year’s revenue had included sales of residential units from an overseas project.

Hospitality segment posted a higher revenue, mainly due to higher overall occupancy rate achieved during the current financial year under review.

Services segment recorded higher revenue from STM Lottery, driven by larger accumulated jackpot from the Supreme Toto 6/58 game in the current financial year, despite fewer number of draws conducted (164 draws compared to 167 draws in the previous financial year) during the current financial year. The lower revenue contribution of this segment in the current financial year under review, primarily due to the reduced revenue from the MTNS business as well as the deconsolidation of Naza Enviro Holdings Sdn Bhd (formerly known as Berjaya Enviro Holdings Sdn Bhd) and Singapore Institute of Advanced Medicine Holdings Ltd (“SIAMH”).

The Group reported a pre-tax loss of RM419.48 million for the current financial year ended 30 June 2025, compared to the pre-tax profit of RM619.97 million recorded in the previous financial year. This was mainly due to weaker performance in the retail and property segments. In addition, the Group incurred higher net investment related expenses, including non-cash impairments totalling RM437.28 million on non-performing assets, in accordance with applicable accounting standards. These impairments may be subject to reversal in the future should conditions improve. In the previous financial year, the Group’s performance benefitted from the substantial gain arising from the disposal of certain subsidiaries and the gain on remeasurement of the retained equity interest of a former subsidiary.

Retail‘s food segment reported a higher pre-tax loss in the current financial year, mainly due to the factors contributing to the lower revenue, as well as the impairment loss recognised during the current financial year.

The non-food retail business reported a lower pre-tax profit for the current financial year, primarily attributable to HR Owen. This was mainly due to higher operating expenses incurred from its brand positioning efforts, whilst partially mitigated by reduced finance costs following the interest rate reduction in the United Kingdom.

The decline was further mitigated by improved results from Cosway, supported by a higher gross profit margin driven by a more favourable product mix and reduced operating costs.

Property segment recorded a pre-tax loss due to lower revenue registered in the current financial year.

Hospitality segment’s higher pre-tax profit was in tandem with its increased revenue during the current financial year under review.

Services segment saw the gaming business posted a higher pre-tax profit, mainly due to higher revenue achieved coupled with a lower prize payout by STM Lottery during the current financial year, as well as the deconsolidation effect of SIAMH. The MTNS business reported a lower pre-tax profit as a result of lower revenue and impairment of contract assets reported in the current financial year.

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 geo-political tensions and the inflationary tariffs being imposed by the Government of the United States of America. 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 activities. As for Number Forecast Operator (“NFO”) business, it is expected to continue to deliver growth in line with the popularity of its Jackpot and Digit games and continues its lead in terms of market share in the legalised NFO business sector.

Notwithstanding the aforesaid and barring any unforeseen circumstances, the Board is cautiously optimistic that the performance of the business operations of the Group for the financial year ending 30 June 2026 to be satisfactory.