Guocoland 3Q net profit tumbles 91% to RM6.73 mil

Guocoland 3Q net profit tumbles 91% to RM6.73 mil
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KUALA LUMPUR (April 26): Guocoland (Malaysia) Bhd’s net profit fell significantly by 90.81% to RM6.73 million for the third quarter ended March 31, 2022 (3QFY21), compared with RM73.23 million a year earlier when the group had gained from the disposal of a piece of land in Jasin, Melaka. 

Earnings per share declined to 1 sen from 10.93 sen, the group’s Bursa Malaysia filing showed.

Quarterly revenue tumbled 63.78% to RM121.30 million, from RM334.90 million.

Guocoland said the disposal of the land in Jasin resulted in a revenue of RM260.2 million and profit before tax of RM157.7 million for the group in 3QFY20.

“Excluding this for comparison, the group recorded a better performance in the current quarter with higher revenue of RM46.6 million and profit before tax of RM16.1 million, as compared to the previous corresponding quarter,” the group said.

On a quarter-on-quarter basis, the group’s net profit jumped 78.75% from RM3.76 million in 2QFY21, while revenue increased 14.92% from RM105.56 million.

The improved results were mainly attributable to higher contributions from the property development division and lower loss incurred by the hospitality division.

For the nine-month period, the group’s net profit fell 96.43% to RM2.51 million, from RM70.41 million. Revenue declined 49.34% to RM261.99 million, from RM517.15 million.

Moving forward, the group said it will continue to focus on monetising its inventories and progressing its development projects for timely completion.

“New product launches will be phased according to prevailing market conditions. The group remains alert to opportunities to increase its landbank,” it added.

Shares in Guocoland ended unchanged at 70 sen on Tuesday (April 26), giving the group a market capitalisation of RM490.32 million. 

S Kanagaraju