Johor Corp pre-tax profit jumps 121% to RM1.37b in FY13

KUALA LUMPUR: Johor Corporation’s (JCorp) group profit before tax jumped 121% to RM1.37bil in the financial year ended Dec 31, 2013 from RM617mil in 2012, underpinned by the plantation, property and healthcare sector.

It said on Thursday the surge in profit was due to its strategic business transformation plan to grow its core sector. JCorp said 85% of the profits were derived from plantation, property and healthcare sector.

Its president and chief executive Datuk Kamaruzzaman Abu Kassim said JCorp’s FY13 revenue was RM6.57bil, which did not take into account the quick service restaurant sector which was equity accounted after the purchase of QSR Brands Bhd by JCorp.

“For the past years, JCorp has delivered steady growth and once again demonstrated our ability to deliver continued financial success amidst market challenges.

“We are confident of maintaining such growth momentum from existing and new businesses that will certainly steer JCorp to reduce its gearing to zero by the year 2022," he said.

Kamaruzzaman expected JCorp's plantation business to post commendable earnings in 2014 underpinned by strong business fundamentals in the long-term, higher fresh fruit bunches (FFB) yield, and progressive replanting that had increased matured palm oil area.

JCorp is expanding its plantation landbank to Indonesia via the takeover of a 75% stake in PT Wisesa Inspirasi Nusantara. The acquisition increased its total landbank by 40,000ha.

Kamaruzzaman said JCorp would look for opportunities in downstream and upstream oil and gas sectors.

JCorp is expanding its healthcare business by building more hospitals to strengthen its network of hospitals and enlarge its customer base.

Under the KPJ brand, there are 26 private specialist hospitals in Malaysia and abroad.

As for the group’s property business, Kamaruzzaman added the RM400mil KOMTAR Johor Bahru City Centre redevelopment project was on track.

The 37,626 sq metres shopping mall and the renovated Menara KOMTAR were expected to be completed by mid-2014 while the high-rise office tower and a four-star hotel by end-2016.