Bina Darulaman Berhad records RM8 million pre-tax profit despite challenging operating environment

ALOR SETAR: Bina Darulaman Berhad (“BDB”) has recorded a full-year Profit Before Tax (PBT) of RM8.0 million for the financial year ended 31 December 2021 (FY2021) in spite of the challenging operating environment as a result of the Covid-19 pandemic and the subsequent nationwide lockdowns. PBT decreased by 5.54% from the previous year’s (FY2020) PBT of RM8.53 million.

Revenue for the year was RM210.62 million, a decrease of 4.08% from FY2020’s RM219.56 million due to the strict containment measures mandated under the National Recovery Plan (NRP) imposed in 2021.

BDB’s Property Division posted slightly lower revenue of RM100.2 million compared to RM102.7 million in FY2020. The decrease in revenue was contributed by lesser sale of completed units compared to 2020. However, the division recorded higher PBT of RM6.9 million for FY2021 compared to the PBT of RM2.6 million in FY 2020 due to the change of the Group’s Leisure business model.

BDB’s Engineering, Construction and Quarry (“ECQ”) Division posted lower revenue of RM109.2 million compared to RM115.0 million in FY2020. The division recorded lower PBT of RM4.3 million in FY2021 compared to RM11.4 million in FY2020 due to higher operating and administrative costs. The fall in ECQ’s revenue and PBT can be attributed to strict containment measures under the NRP which dampened contruction activities in 2021, particularly in Kedah. In fact, Kedah experienced the longest period under the lockdown more than any other state which had a detrimental effect on the Group’s core business activities. Kedah was the last state to enter the NRP’s Phase 4 which allowed for the resumption of business activities.

Mohd Iskandar Dzulkarnain Ramli, BDB’s Chief Corporate Officer, said: “BDB’s ongoing profitability in FY2021 was made possible as a result of the Group’s unwavering focus and pursuit with regards to enhancing BDB Core Business towards resilient foundation, maximising operational efficiencies, staff welfare and enhanced manpower utilisation and financial restucturing.”

“Moving ahead in 2022, with sizeable projects in hand, we will continue to implement and embed these measures into the Group in order to enhance BDB’s core businesses, improve financial sustainability, embrace digital transformation and carve out new revenue streams.”

“These measures will ensure the Group realigns its business and operational structure, sharpens productivity and strengthens capital efficiency, thereby reinforcing its ability to withstand adversity, bounce back from difficult life events and maximise opportunities in 2022.”

The Group remains vigilant and cautious amidst external challenges. The Group is confident that existing and future projects will continue to provide sustainable business and boost the performance of the Group as it moves forward.