2025

recorded a revenue of RM2.54 billion and incurred a pre-tax loss of RM8.88 million for the current quarter ended 31 March 2025 as compared to a revenue of RM2.78 billion and pre-tax profit of RM773.66 million reported in the corresponding quarter of the previous year.

PRESS RELEASE

BERJAYA CORPORATION BERHAD REPORTS RM2.54 BILLION REVENUE FOR Q3FY2025 ENDED 31 MARCH 2025

Date: 30 May 2025

Venue: Kuala Lumpur

For the 3rd Quarter ended 31 March 2025

Berjaya Corporation Berhad (“BCorp” or “the Group”) recorded a revenue of RM2.54 billion and incurred a pre-tax loss of RM8.88 million for the current quarter ended 31 March 2025 as compared to a revenue of RM2.78 billion and pre-tax profit of RM773.66 million reported in the corresponding quarter of the previous year.

The Group’s performance for the quarter under review was driven by the following business segments:

Retail (Non-Food) business reported higher revenue, mainly driven by the strong performance of H.R. Owen Plc (“HR Owen”). The increase was attributed to the higher sales volume in both the new and used car sectors. Sales from the new marque, Lotus, which is now represented by HR Owen, contributed to the revenue growth, and the launches of certain new models further supported the improved performance in the current quarter. However, when translated into Ringgit Malaysia, the Group’s reporting currency, revenue growth was dampened by the unfavourable impact of foreign exchange effect.

The non-food retail business segment reported a higher pre-tax profit, primarily attributable to HR Owen’s improved performance, in line with the increased revenue achieved during the current quarter under review.

HR Owen’s positive results offset the lower results from Cosway’s operations, which were impacted by the closure of non-performing stores in certain countries.
Retail (Food) business reported a lower revenue due to a reduced number of Starbucks cafes in operation compared to the previous year’s corresponding quarter, as well as the cessation of Papa John’s Pizza operations in the Philippines during the current quarter.

A higher pre-tax loss was reported by this business segment in the current quarter, due to the weaker performance of Kenny Rogers Roasters operations and additional pre operating costs incurred for the Group’s new overseas operations.
Property segment reported a decline in revenue for the current quarter, due to the completion of The Tropika, Bukit Jalil project in the final quarter of the previous financial year. However, this decline was mitigated by higher sales of residential units from a local project in the current quarter under review. Additionally, the corresponding quarter of the previous year included sales from an overseas residential project.
Hospitality segment reported a higher revenue, mainly due to the increase in overall average occupancy rate but a higher pre-tax loss, from its higher operating expenses incurred in the current quarter under review.
Services segment reported a higher revenue in the current quarter, primarily driven by the gaming business operated by STM Lottery Sdn Bhd (“STM Lottery”). STM Lottery recorded a stronger revenue growth as compared to the corresponding quarter of the previous year, given that the number of draws remained the same in both quarters. The improvement in sales was mainly attributed to an exceptional surge in the accumulated jackpot from the Supreme Toto 6/58 game.

The higher revenue from STM Lottery offset the lower revenue recorded by the managed telecommunications network services (“MTNS”) business, as well as the deconsolidation of Naza Enviro Holdings Sdn Bhd (formerly known as Berjaya Enviro Holdings Sdn Bhd) (“NEH”) and Singapore Institute of Advanced Medicine Holdings Ltd (“SIAMH”).

The higher pre-tax profit reported for the gaming business operated by STM Lottery was primarily driven by a combination of higher sales and lower prize payouts in the current quarter under review.

For the 9-month period ended 31 March 2025

The Group registered a revenue of RM6.97 billion and incurred a pre-tax loss of RM149.47 million for the financial period ended 31 March 2025 as compared to a revenue of RM7.58 billion and pre-tax profit of RM751.65 million reported in the previous year corresponding period.

The Group’s performance during the 9-month period under review was contributed by the following business segments:

Retail segment’s food retail business reported a lower revenue and a pre-tax loss due to the prolonged impact of ongoing sentiment related to the Middle East conflict, which affected the market dynamics and influenced consumer spending patterns during the current period under review.

However, higher revenue was reported by the non-food retail business, mainly due to higher revenue contributions from HR Owen, supported by optimistic demand from the used car sector, as well as contributions from the new marque, Lotus, which is now represented by HR Owen during the financial period. However, the unfavourable foreign exchange effect resulted in a more modest increase in revenue when translated into Ringgit Malaysia.

The higher revenue from non-food retail business has offset the lower revenue from Cosway’s operations, as a result of the closure of non-performing stores in certain countries.

The non-food retail business reported a pre-tax profit contributed by Cosway operations due to the closure of non-performing stores in certain countries and reduced operating costs. The improvement was further supported by a higher gross profit margin, driven by a more favourable product mix.
Property segment reported lower revenue and a pre-tax loss in the current period, primarily due to the completion of The Tropika, Bukit Jalil project. This decline was mitigated by the higher sales of residence units from a local project in the current period Page 2 of 3 under review. Additionally, the corresponding period in the previous year had included sales of residential units from an overseas project.
Hospitality segment reported a higher revenue and a higher pre-tax profit, mainly attributed by the higher overall occupancy rate during the current period under review.
Services segment reported a higher revenue contribution, primarily from STM Lottery despite a lower number of draws conducted in the current period under review (123 draws versus 126 draws in the previous year corresponding period). The growth was primarily driven by a sudden surge in the tickets sales from the Supreme Toto 6/58 game, following an exceptional increase in its accumulated jackpot during the current period.

The higher revenue from STM Lottery offset the deconsolidation effects of NEH and SIAMH.

The segment also reported a higher pre-tax profit mainly due to higher revenue achieved coupled with a lower prize payout by STM Lottery during the current period under review.

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 United States government. 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-related activities. As for the gaming business, it is expected to continue its growth trajectory, in line with the ongoing popularity of its Lotto and Digit games to achieve commendable results.

Taking account of the aforesaid and barring any unforeseen circumstances, the Directors are cautiously optimistic that the Group’s business operations will deliver a satisfactory performance for the remaining quarter of the financial year ending 30 June 2025