IOI Properties' Q1 net profit improves 17pct to RM192mil

Posted:
Source: New Straits Times

In a filing to Bursa Malaysia today, the company attributed the profit mainly to better performance from property development segment.

 

KUALA LUMPUR: IOI Properties Group Bhd's net profit increased 16.9 per cent to RM192.11 million in the first quarter (Q1) ended September 30, 2020 from RM164.39 million.

In a filing to Bursa Malaysia today, the company attributed the profit mainly to better performance from property development segment.

Its revenue in Q1 improved 22.1 per cent to RM659.67 million from RM540.32 million.

IOI Properties said its property development segment had recorded revenue and operating profit of RM549.7 million and RM249.1 million respectively.

This is RM150.8 million or 38 per cent and RM58.9 million or 31 per cent respectively higher than the preceding year corresponding quarter.

"Better financial performance in the current year quarter is mainly attributable to higher sales contribution from both Malaysia and China's operations," it said.

Its property investment segment's revenue and operating profit of RM83.2 million and RM47.1 million for the current year quarter are RM7.1 million or eight per cent and RM7.9 million or 14 per cent lower than the preceding year corresponding quarter.

"This is due to rental relief assistance extended to tenants due to Covid-19 pandemic," it said.

IOI Properties said its hospitality and leisure business' revenue had decreased 51 per cent from RM50.1 million to RM24.5 million, while operating profit dropped from operating profit of RM6.2 million to operating loss of RM3.3 million.

This was due to drop in occupancy rate and loss of revenue due to imposition of Movement Control Order (MCO).

The group expects the operating environment to continue to be challenging and uncertain.

"Nonetheless, the group will continue with its prudent and professional management approach to ensure the delivery of satisfactory performance in the coming quarters whilst consolidating its market position and strengthening its competitive edge to seize any opportunity which may emerge when the situation improves," it said.