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For the nine months ended 28 February 2015, the Group posted lower revenue of RM1.1 billion compared with RM1.4 billion in the corresponding period last year. Consequently, the Group posted lower profit before taxation ("PBT") of RM13.9 million compared with RM37.6 million in the corresponding period last year.
For the financial quarter ended 28 February 2015, the Group posted lower revenue of RM339.6 million compared with RM397.5 million in the corresponding quarter last year. PBT of the Group decreased to RM3.1 million compared with RM18.3 million in the corresponding quarter last year.
The effective rate of taxation for the Group is higher than the statutory tax rate mainly due to losses in certain subsidiaries that are not available for set-off against taxable profits in other companies within the Group.
The investment holding segment reported a segmental loss of RM3.4 million for the current financial quarter compared with a segment profit of RM8.7 million in corresponding quarter last year. The segmental profit in the corresponding quarter last year was mainly due to the gain from disposal of a subsidiary.
Agricultural and Industrial Chemicals
The division posted revenue of RM273.5 million for the current financial quarter compared with RM333.6 million recorded in the corresponding quarter last year. The lower revenue was mainly attributed to the lower sales in industrial chemicals businesses due to weak market sentiment. As a result, the division posted a lower segmental profit of RM7.9 million in the current financial quarter compared with RM12.4 million a year ago.
The Polymer Division achieved higher revenue of RM30.0 million for the current financial quarter, which represents a marginal increase of 15.9% from RM25.9 million in the corresponding quarter last year due to higher contribution by its cuspation division and also the manufacturing plant in Surabaya, Indonesia. The Division registered higher PBT of RM3.7 million compared with RM1.3 million achieved in the same period last year.
The Logistics Division posted lower revenue of RM7.1 million compared to RM7.3 million in the corresponding quarter last year. The lower revenue was primarily due to lower demand for third party transportation services. Despite lower revenue, segmental profit improved to RM0.8 million from RM0.5 million in the corresponding quarter last year, mainly due to better performance in the tank farm business.
The IT Division achieved lower revenue of RM1.8 million compared with RM6.1 million in the corresponding quarter last year while its segmental loss decreased to RM0.3 million compared with RM0.7 million in the corresponding quarter last year. The improved result was primarily due to better costs management after restructuring of its operations.
The Media division posted higher revenue of RM28.8 million compared with RM25.7 million in the corresponding financial quarter last year. The division posted a segmental profit of RM0.2 million in the current financial quarter compared with segment loss of RM2.7 million a year ago. The division posted a commendable result despite a challenging operating environment in the media industry.
Among the key business segments, Agricultural and Industrial Chemical Division and Polymer Division are expecting challenging business environments with continued pressure on profit margins as product suppliers and logistic providers seek higher prices. Competition in the agricultural chemical business is expected to intensify due to aggressive pricing. The continued weakness in the domestic economy has affected the advertising industry in general. The Media Division will face pressure on its sales growth under the prevailing economic conditions.
There remains uncertainties in the global economic conditions, which may have an impact to the Group's businesses, the Board will continue to exercise caution in managing the Group's businesses in the coming financial year. The Board will continue to explore ways to improve revenue growth while strengthening its operational and productivity efficiencies.
The Board is of the view that, barring unforeseen circumstances, the financial performance and prospects of the Group will be satisfactory in the rest of this financial year.