Construction underway for the Great Mall of China in Hebei province, China. The photo was taken on April 5, 2012.
PETALING JAYA: Berjaya Corp
Bhd (BCorp) widened its loss to RM368.91mil for the fourth quarter to April 30, 2016 from RM274.97mil previously, mainly due to non-cash impairment losses in goodwill value of RM473.2mil.
Its revenue, however, was up 6.94% to RM2.48bil for the period.
For the quarter, the diversified group has declared a dividend of 2.16 sen from one sen previously.
Nonetheless, due to these huge impairment losses, BCorp was in the red for the full financial year ended April 30, 2016, with losses of RM174.7mil. This was a contrast from the previous net profit of RM831.67mil.
Revenue dropped to RM9.02bil from RM9.51bil previously.
Looking at the breakdown of the losses, BCorp told Bursa Malaysia that it was mainly due to non-cash impairments in the value of goodwill of RM473.2mil, associated companies of RM28.71mil, property, plant and equipment of RM25.67mil and assets held for sale relating to Berjaya (China) Great Mall Co Ltd of RM131.81mil, totalling RM659.39mil.
Meanwhile, the losses by the retail distribution business was mainly due to unfavourable economic conditions in China and the impact of the goods and services tax (GST) on its Malaysian operations as compared to the preceding year’s corresponding quarter.
“The quantum of decrease was mitigated by higher revenue reported by the motor distribution business, which reported higher revenue under HR Owen PLC due to the contribution from additional outlets, as well as the introduction of new models by the car manufacturers in the current quarter under review,” said the company.
Higher revenues were also reported by the restaurant and cafe business.
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