KUALA LUMPUR (Aug 26): IGB Bhd turned to a loss of RM14.97 million or 1.83 sen per share in the second quarter ended June 30, 2020 (2QFY20), dragged by weaker performance from its property development, hotel, and retail property investment segments.

It was IGB’s second quarterly loss since listing in 2002. The last time the group dipped into the red was in 2011, according to its filings. The group booked a net profit of RM17.68 million in 1QFY20.

The dismal performance came as quarterly revenue slumped to a seven-year low of RM168.53 million — down 42% on-quarter from RM291.42 million — with lower contribution across the board.

On a year-on-year (y-o-y) basis, IGB’s net profit in 2QFY19 stood at RM32.86 million. Comparatively, quarterly revenue fell 47% y-o-y from RM317.06 million.

Despite the loss-making quarter, IGB declared an interim dividend of RM16.77 million or two sen per share, which is to be paid by way of dividend-in-specie by distributing treasury shares, with ex-date on Sept 11.

For the six-month period ended June 30, IGB stayed profitable with a net profit of RM2.7 million, although it is sharply lower against RM82.31 million in the previous corresponding period.

This was due to lower top line contribution from all operations save for commercial property investment, which saw a marginal y-o-y increase, which dragged IGB’s half-year revenue by 29.33% to RM459.95 million, from RM650.82 million in 6MFY19.

“Based on the financial results for the first six months, the group’s performance for FY20 will be significantly affected when compared with FY19,” IGB said.

“The group has taken steps to mitigate the impact by taking various measures to control and reduce non-essential operating expenses. The group will continue to monitor the situation closely and take appropriate actions when necessary,” it said.

Shares of IGB closed unchanged at RM2.62, valuing the property group at RM2.33 billion.

Edited by Kathy Fong