Berjaya Corp posts RM2.21 billion revenue for Q2'26

PETALING JAYA: Berjaya Corporation Bhd (BCorp) registered revenue of RM2.21 billion in the second quarter ended Dec 31, 2025, closely aligned to evenue of RM2.20 billion reported in the same quarter of the previous year.

Notably, the group made significant progress by reducing its pre-tax loss to RM0.94 million in the current quarter under review compared to a pre-tax loss of RM39.02 million reported in the previous year corresponding quarter.

The significant improvement was primarily attributed to the reversal of impairment in associate companies, which partially offset by weaker performance in the hospitality and non-food retail business segments, as well as the unfavourable unrealised foreign exchange losses arising from the strengthening of the ringgit.

The performance of the group in the quarter under review was contributed by the following business segments:

Retail (food) business reported a slight improvement in the quarter under review, mainly due to the contribution from the group’s overseas operations compared to the corresponding quarter of the previous year. The higher revenue from the overseas operations offset the lower revenue from the group’s Malaysian operations, which was due to a reduced number of operating stores following the closure of non-performing stores in the previous financial year. Despite the reduced number of operating stores, the group’s Malaysian operations recorded encouraging positive same-store sales growth, reflecting improved performance at the operational level.

A lower pre-tax loss was reported this current quarter, due to improved profit margin arising from cost-saving initiatives, store rationalisation measures, as well as lower depreciation and amortisation charges following the impairments recognised in the previous financial year.

The retail (non-food) business reported a lower revenue, mainly impacted by lower sales contribution from HR Owen Plc, attributed to softer new car sales, but partially mitigated by increased revenue from the used car sector. Vehicles product life cycle factors along with transition gaps between new model launches led to the lower sales for the new car sector. When translated into ringgit, the revenue reduction was further impacted by unfavourable foreign exchange translation effect.

Declined revenue from Cosway following the reduced contributions from its operations and the closure of its non-performing stores in certain countries has also contributed to the group’s lower revenue.

The pre-tax loss reported by the non-food retail business was in line with the drop in revenue, coupled with increased operating expenses incurred amid the challenging economic conditions in the United Kingdom and the impact of newly implemented labour regulations there.

Property segment reported a higher revenue for the current quarter, resulting from higher property progress billings from its projects at Residensi Oak, Bukit Jalil and Pangsapuri Azalea, Subang Heights. This was partially offset by lower sales of residence units from a local project in the current quarter under review. This also resulted in the lower pre-tax loss reported.

Hospitality segment reported a lower revenue, primarily attributed to lower overall occupancy rates in the current quarter under review, which resulted into a pre-tax loss.

Services segment posted a higher revenue in the current quarter, driven by higher revenue contributions from STM Lottery Sdn Bhd, primarily driven by an increase in average sales per draw, arising from higher accumulated jackpot prizes in Lotto games, as well as having an additional draw in the current quarter under review (42 draws versus 41 draws in previous year corresponding quarter).

The increase was partially offset by the lower revenue from the telecommunications network services (MTNS) business. The decrease in MTNS revenue was mainly due to certain projects nearing the end of their deployment phase, with several projects having been completed in the previous financial year.

The services segment also reported a higher pre-tax profit from STM Lottery, which primarily reflects a combination of stronger sales and lower prize payout in the current quarter. This offsets the lower pre-tax profit recorded by the MTNS business, mainly due to reduced revenue.

For the six-month period ended Dec 31, 2025, the group registered an improved revenue of RM4.52 billion and recorded a pre-tax profit of RM36.61 million for the financial period ended Dec 31, 2025. This compares to the previous year corresponding period’s revenue of RM4.43 billion and a pre-tax loss of RM140.60 million.

The significant improvement in the financial performance was mainly attributed to the reversal of impairment in associated companies, as well as improved performance from the property and food retail business segments.This was partially offset by the unfavourable foreign exchange translation losses arising from the strengthening of the ringgit.

The group’s performance during the six-month period under review was contributed by the following business segments:

The retail segment’s food business reported improvement in revenue, mainly due to the contribution from the group’s overseas operations compared to the corresponding period of the previous year. The higher revenue from the overseas operations offset the lower revenue from the group’s local operations, which was due to a reduced number of operating stores following the closure of non-performing stores in the previous financial year. Despite the reduced number of operating stores, the group’s Malaysian operations recorded encouraging positive same-store sales growth, reflecting improved performance at the operational level.

The non-food retail business recorded a lower revenue, mainly attributed to reduced contributions from both Cosway and HR Owen. The decline in Cosway’s revenue reflected the further closure of certain non-performing stores in certain countries during the current quarter. HR Owen, however, recorded a revenue growth of 1% in its reporting currency, sterling pound, primarily driven by higher sales volumes in the used car segment.

Nevertheless, when translated to ringgit, the revenue declined by 0.7%, mainly due to unfavourable foreign exchange translation effect.

Both of food retail business and non-food retail business’ pre-tax loss are due to the same reasons mentioned in the current quarter under review.

Property segment reported a higher revenue and lower pre-tax loss for the current period, primarily due to higher property progress billings from its projects at Residensi Oak, Bukit Jalil and Pangsapuri Azalea, Subang Heights. This was partially offset by lower sales of residence units from a local project in the current period under review.

Hospitality segment reported a higher revenue from higher overall average room rates achieved during the current period under review, while the lower pre-tax profit reported was due to unrealised foreign exchange translation effect.

Services segment recorded a lower revenue contribution in the current period, primarily due to lower revenue from the MTNS business. The decrease in MTNS revenue was mainly due to certain projects nearing completion of its deployment phase and also several projects were ended in the previous financial year.

However, this was mitigated by higher revenue from STM Lottery, driven by higher average sales per draw, increased interests in the Jackpot games and an additional draw conducted in the current period under review (82 draws versus 81 draws).

The gaming business reported a lower pre-tax profit, due to higher prize payout and increased operating expenses incurred in the current period under review. Similarly, the MTNS business reported a lower pre-tax profit due to lower revenue and reduced gross profit contributed by the MTNS business in the current period.

Notwithstanding the aforesaid and barring any unforeseen circumstances, the Directors are cautiously optimistic that the performance of the business operations of the group for the remaining quarters of the financial year ending June 30, 2026 to be satisfactory.