IOI Properties Profit Drops 67% In Q1

IOI Properties Group Berhad recorded revenue of RM648 million for the first quarter of the financial year 2024 which is slightly lower compared to RM691 million in 2022. Profit after tax dropped to RM174 million from RM640 million recorded in the previous year’s quarter.

Profit before tax in Q1 FY2024 was 67% lower at RM225.2 million compared to RM689.7 million reported in Q1 FY2023. After excluding the fair value gain and impairment loss, the underlying PBTin Q1 FY2023 is computed at RM254.2 million, where the PBT in the current quarter is only 11% lower. The lower PBT is largely due to the weaker contribution from the property development segment in Malaysia and the People’s Republic of China recording lower sales.

Nevertheless, the group said the weaker performance of the property development segment is partially offset by the significant improvement in the property investment segment. This demonstrates the Group’s agility and robustness in enhancing the performance cycle of its diverse business segments in a fluctuating economic cycle

For Q1 FY2024, the property development segment achieved sales of RM587.0 million. Local projects contributed RM572.6 million, which is 98% of the total sales, while overseas projects in PRC contributed RM14.4 million, or the remaining 2%.

Source: Business Today