KUALA LUMPUR (May 27): Sunway Bhd's net profit for the first quarter ended March 31, 2020 (1QFY20) fell 42.6% to RM78.29 million, against RM136.41 million in the previous corresponding quarter. All its business segments, except for property development and quarry, had lower contributions in the financial quarter under review.

The group's earnings per share slipped to 1.35 sen, from 2.7 sen in 1QFY19. Quarterly revenue dropped 13.5% to RM971.44 million from RM1.12 billion last year, showed a filing with Bursa Malaysia today.

The lower revenue contributions were from most business segments apart from property development, quarry and healthcare.

The Movement Control Order (MCO) and Conditional MCO (CMCO) since March 18 in order to contain the Covid-19 outbreak have caused significant disruptions and financial impact to the group, particularly on the hospitality and leisure businesses, under the property investment segment, that were not allowed to operate during MCO and CMCO.

"Although most of the other businesses of the group have resumed operations during the CMCO, the anticipated business recovery will be challenging and dependent on the overall improvement of the broader economy," said Sunway.

Going forward, the group's performance is expected to be adversely impacted by the pandemic if it is not brought under control. Thus, to mitigate the consequences, the group has activated its Business Continuity Plan which incorporates a digital platform to manage the operational disruptions caused by the pandemic and the imposition of the MCO.

Additionally, Sunway said the group has implemented several cost-saving measures including recruitment freeze, adding that it will continue to monitor the situation and will take appropriate measures if warranted.

Sunway also pointed out that the development profits on one of the group's Singapore and China property development projects, which were earlier deferred due to the adoption of MFRS 15, will be recognised upon completion and handover of the projects in the second half of 2020.

Shares in Sunway closed two sen or 1.31% at RM1.51, valuing the company at RM7.45 billion. Some 7,22 million shares were done.