This article first appeared in The Edge Financial Daily on March 15, 2018

KUALA LUMPUR: Glomac Bhd’s net profit fell 19.8% to RM4.31 million in the third financial quarter ended Jan 31, 2018 (3QFY18) from RM5.37 million a year ago, in the absence of cost savings that it saw from the finalisation of costs at its Lakeside Residences project in Puchong Jaya, Selangor in 3QFY17. This resulted in lower earnings per share of 0.54 sen in 3QFY18 compared with 0.68 sen in 3QFY17.

Quarterly revenue, however, rose 20% to RM105.13 million from RM87.49 million in 3QFY17.

For the cumulative nine months (9MFY18), the group’s net profit dropped 92.8% to RM7.82 million from RM109.16 million a year ago. Revenue also fell 26.1% to RM312.55 million from RM422.9 million.

The property developer attributed the decline in profit to a one-off profit recognition for the disposal of land in the previous year.

For the remaining period ending April 30, 2018 (FY18), Glomac said the environment will continue to be difficult. "Even with the planned future launches for the current financial year, the group’s performance for FY18 is expected to be challenging.”

"In line with prevailing market conditions, Glomac is maintaining its development strategy of focusing on mass market demand. New launches in this segment to date have been well received and this momentum is expected to sustain in the foreseeable future," said Glomac in a separate statement.

Of the group’s targeted new launches amounting to RM542 million in FY18, 90% are landed developments comprising terrace houses, semi-detached and affordable homes. Glomac has ongoing and future projects totalling RM9 billion in gross development value.