PETALING JAYA (May 29): Berjaya Corporation Berhad reported stronger contributions from its property and hospitality divisions for the third quarter ended March 31, 2026 (3QFY2026), although weaker performances from its non-food retail and services businesses resulted in a wider quarterly loss.
According to the group’s Bursa Malaysia filing, the property segment recorded higher revenue during the quarter, supported mainly by progress billings from the Residensi Oak development in Bukit Jalil and Pangsapuri Azalea in Subang Heights. The improvement was partially offset by lower sales of residential units from another local project.
The hospitality division also delivered better revenue performance, driven by improved overall occupancy rates across its hotel operations.
Despite stronger performances from these segments, group revenue declined 14% year-on-year to RM2.19 billion from RM2.54 billion in the corresponding quarter last year, as softer contributions from the non-food retail and services divisions outweighed gains from property and hospitality.
BCorp posted a pre-tax loss of RM118.33 million compared with a pre-tax loss of RM8.88 million a year earlier. Net loss attributable to shareholders widened to RM176.24 million from RM92.34 million previously, translating into a basic loss per share of 3.01 sen against 1.58 sen last year.
The group said its non-food retail division, led mainly by UK luxury automotive subsidiary H.R. Owen Plc, recorded lower sales volumes for both new and used vehicles. The decline was attributed to longer vehicle product life cycles, model transition gaps and unfavourable foreign exchange translation effects.
In addition, the segment’s pre-tax profit was affected by higher statutory employment costs following the implementation of new labour regulations in the United Kingdom from April 2025.
Meanwhile, the food retail segment registered improved revenue supported by contributions from overseas operations and higher revenue from Starbucks Malaysia, despite operating fewer stores during the quarter. The stronger performance helped offset weaker revenue from Kenny Rogers Roasters Malaysia following continued closures of non-performing outlets.
The segment also reported a lower pre-tax loss due to improved profit margins from cost-saving measures, store rationalisation initiatives, and lower depreciation and amortisation expenses after impairment losses recognised in the previous financial year.
The services segment, however, recorded lower revenue mainly because of reduced contributions from STM Lottery Sdn Bhd. The previous year’s corresponding quarter had benefited from stronger sales driven by higher accumulated jackpot prizes for the Supreme Toto 6/58 game and one additional draw.
Revenue from the telecommunications network services business also declined as several projects neared completion or had already been completed in the previous financial year. The segment’s lower pre-tax profit was broadly consistent with the weaker revenue performance.
For the cumulative nine-month period ended March 31, 2026, BCorp’s revenue slipped to RM6.71 billion from RM6.97 billion previously. However, its pre-tax loss narrowed to RM81.72 million compared with RM149.47 million a year earlier. Net loss attributable to shareholders improved to RM231.34 million from RM348.87 million previously.
As at March 31, 2026, the group’s total assets stood at RM21.89 billion compared with RM22.48 billion as at June 30, 2025. Equity attributable to owners of the parent amounted to RM5.99 billion, with net assets per share easing to RM1.01 from RM1.05 previously.
Total borrowings stood at RM6.87 billion, comprising RM2.83 billion in short-term borrowings and RM4.05 billion in long-term borrowings. No dividend was declared for the quarter.
Looking ahead, BCorp said it remains cautiously optimistic for the remainder of FY2026, supported by expectations of continued domestic consumer spending and tourism activity, while remaining mindful of geopolitical developments and tariff-related uncertainties globally.
Separately, the group announced the appointment of Rayvin Tan Yeong Sheik, 46, as executive director effective May 28, 2026. He previously served as executive director of BCorp from 2005 to 2015 and currently oversees the group’s North Asia operations and Japan expansion plans.
In another filing, Tan Sri Vincent Tan Chee Yioun disclosed disposals of BCorp shares during the closed period on May 28, 2026, involving direct and deemed interests at 25 sen per share.
What Investors Can Learn
BCorp’s latest quarterly results highlight the importance of diversification within large conglomerates. While its property and hospitality divisions showed resilience through stronger progress billings and tourism recovery, weaker performances in automotive retail, lottery operations and telecommunications services significantly impacted overall profitability.
The results also demonstrate how external factors such as foreign exchange fluctuations, changing consumer demand, regulatory costs and product cycles can materially affect multinational business segments. Investors may view the stronger hospitality occupancy trends and improving food retail margins as positive operational signs, but the widening quarterly losses and high borrowings indicate that the group still faces earnings pressure and execution challenges.
The company’s cautious outlook suggests management expects domestic spending and tourism to remain supportive, although global uncertainties and geopolitical risks could continue to weigh on consumer sentiment and operating costs moving forward.
Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.
Posted by Yao Mu Realty Sdn Bhd on 30 May 26
Malaysia