ORIENTAL HOLDINGS REPORTS NET LOSS OF RM81.77 MLN IN Q1

KUALA LUMPUR, June 30 -- Oriental Holdings Bhd posted a net loss of RM81.77 million in its first quarter ended March 31, 2020 (Q1) compared with a net profit of RM93.17 million in the same period in 2019.

Revenue declined 31.2 per cent to RM956.39 million from RM1.39 billion previously due to a decline in contribution from the automotive segment by RM409.5 million amidst lower sales by the retail operations in Malaysia.

In a filing to Bursa Malaysia today, it said the automotive segment's revenue decreased by 40.4 per cent to RM604.5 million from RM1.01 billion previously.

Oriental said retail operations in Singapore registered a 36.6 per cent decline in revenue due to the lower number of cars sold, which was in line with the reduction in Certificate of Entitlement quota and dampened consumer sentiments caused by the disruption to business activities amidst COVID-19.

For the retail operations in Malaysia, revenue decreased by 47.6 per cent attributed to the 51 per cent drop in the number of new Honda cars sold due to the delay in launching various new models pending their price approval by the authorities and the implementation of the Movement Control Order (MCO).

The plastic segment recorded a decrease in revenue of 29.5 per cent to RM45.2 million following a decline in orders from automotive and electronics customers and the suspension of production activities following the lockdown of activities with the MCO implementation.

Meanwhile, the hotels and resorts segment posted a 19.7 per cent drop in revenue to RM63.8 million due to the decline in room occupancy rates.

In contrast, the plantation segment generated a revenue of RM132.5 million, an increase of 3.2 per cent from RM128.4 million in Q1 2019 due to the 27.7 per cent increase in crude palm oil (CPO) prices and 7.5 per cent increase in palm kernel prices.

"The board is mindful of the seismic shifts that the COVID-19 pandemic has brought about to the domestic and global economies.

"The board will navigate the challenges ahead and formulate plans to strengthen the group’s solid foundation further for a sustainable growth," it said.

-- BERNAMA