Its revenue, meanwhile, decreased marginally to RM3.24 billion from RM3.44 billion in Q1 FY2022.
In a filing with Bursa Malaysia, Boustead said the group recorded a loss before tax and zakat of RM15.9 million compared to a profit before tax and zakat of RM683.1 million in Q1 FY2022.
The group said the shortfall was mainly due to a one-off gain achieved in Q1 FY2022 for the disposal of plantation assets, weaker operational results due to the decrease in palm product prices, and unfavourable impact on the valuation of fresh fruit bunches.
“The plantation division registered a lower profit before tax of RM13.5 million from RM509.5 million previously, mainly due to a one-off gain on disposal of plantation assets of RM364.1 million recognised in Q1 FY2022,” it said.
The group added that its pharmaceutical division posted a reduced profit before tax of RM9.3 million from RM36.9 million previously, as revenue was affected by lower customer demand in both its concession and Indonesian segments.
Looking forward, the group said it is optimistic that the progress of its plantation performance improvement programmes, the relaxation of regulations for foreign workers and its mechanisation and digitalisation strategies will improve yields and partially offset the impact of lower crude palm oil prices and rising costs.
Boustead also said the pharmaceutical division is poised to penetrate the Indonesian market further and reinforce its position as a leading healthcare provider in the region.
“In order to exit from the Practice Note 17 (PN17) status, the division, together with its principal adviser, is working on the regularisation plan to improve the shareholders’ equity of Pharmaniaga Bhd.
“It is targeted that the PN17 issue will be settled by Q1 2024,” it said.
In a separate statement filed with the exchange, the group said that the Minister of Finance (Incorporated), a government-linked investment company, is considering acquiring 20.8% of Boustead Heavy Industries Corp Bhd’s entire equity interest in Boustead Naval Shipyard Sdn Bhd.
“The terms of the proposed acquisition are subject to negotiations between the parties,” it added.