Corporate News

Berjaya Philippines 9-month earnings fall 31%

Posted on March 15, 2017

BERJAYA Philippines, Inc. saw its earnings drop by nearly a third in the first nine months of its fiscal year, after it booked losses from the sale of part of its local auto distribution business as well as from foreign exchange fluctuations.

According to its latest financial statements, the Philippine unit of Malaysia’s Berjaya Group reported a 31% decline in earnings to P382.01 million in the May 2016 to January 2017 period, from the P554.74 million in the same nine months of the previous fiscal year.

Berjaya Philippines’ fiscal year ends in April.

The drop in the company’s earnings happened despite a 10% increase in motor vehicle sales, which Berjaya Philippines attributed to “a higher revenue contribution” from H.R. Owen Plc, which is the London-headquartered auto dealership subsidiary of the Philippine-listed investment holding company.

Motor vehicle sales comprised at least 90% of Berjaya Philippines’ total revenue, which in the first nine months of its fiscal year rose to P20.764 billion from the previous year’s P18.869 billion.

Berjaya Philippines booked a P99-million loss after it pared down its stake in Berjaya Auto Philippines, Inc. (BAPI) to 25.48% from 35% previously. BAPI holds the exclusive Philippine distribution rights to Mazda motor vehicles.

Berjaya Philippines also booked a P41.5-million charge in the first nine months, a reversal of the P116.3-million income the previous year. All told, other income of P121.4 million reversed to a loss of P127.9 million over the same period.

In the third quarter alone, Berjaya Philippines’ earnings more than tripled to P183.2 million from the previous year’s P54.8 billion. This as revenue in the three months ended January 2017 rose by nearly 7% to P5.887 billion from P5.500 billion the previous year.

Besides motor vehicle distribution, the company also leases online lottery equipment to the state-owned Philippine Charity Sweepstakes Office in the Luzon area through wholly owned Philippine Gaming Management Corp.

Berjaya Philippines, through wholly owned Perdana Hotel Philippines, Inc., also operates the Berjaya Makati Hotel. -- Arra B. Francia