KUALA LUMPUR (Nov 24): UEM Sunrise Bhd posted a wider net loss of RM50.38 million for the third quarter ended Sept 30, 2021 (3QFY21) compared with RM7.37 million in the immediate preceding quarter. This is the group's seventh consecutive quarterly loss.
Revenue fell 14.49% to RM213.04 million from RM249.14 million in 2QFY21, the property developer's filing with Bursa Malaysia showed.
UEM Sunrise said it recorded an operating loss in the current quarter as a result of lower revenue and foreign exchange losses of RM5.6 million due to weakening Australian dollars and South African rand.
"Consequently, the group recorded a higher loss for the quarter in the absence of deferred tax assets recognition as compared to the previous quarter, partially offset by a more favourable share of results from joint ventures and associates in the current quarter, which was mainly contributed by Horizon Hills Developments Sdn Bhd for its Horizon Hills development in Iskandar Puteri and Sunrise MCL Land Sdn Bhd for Forest Heights, in Seremban," it said.
On a year-on-year basis, UEM saw its net loss widen from RM25.41 million in 3QFY20, while revenue slipped 2.02% from RM217.43 million.
For the cumulative nine-month period ended Sept 30, 2021, UEM Sunrise saw its net loss narrow to RM62.07 million from RM142.62 million a year ago, as revenue climbed 36.1% to RM714.88 million from RM525.25 million.
In a separate statement, UEM Sunrise chief executive officer Sufian Abdullah said the group continued to experience a loss although its operating profit was a substantial improvement compared with the same period last year.
"We are taking corrective measures to stem our losses. Currently, we are rushing for construction progress to gain higher billings and pressing for authorities' approvals on some of our land divestment transactions for the company to recognise after being affected by the lockdown from June 1," he said.
Sufian noted that UEM Sunrise is also stabilising its pipeline and prioritising deployment of the lands recently acquired to create sustainable growth in locations preferred by the market.
"These acquisitions are funded via a blend of internal funds and borrowings and are imperative in creating the required growth momentum. We are aware of the escalating finance cost, and have resorted to identify our borrowing components with plans in mind to pare down debt in the midterm," he said.
Sufian added UEM Sunrise is also taking the opportunity of the anticipated turnaround in the economy to aggressively implement curated measures in the mid to long term and transform the company into an effective and balanced real estate player.
UEM Sunrise's share price closed half a sen or 1.43% lower at 34.5 sen, valuing the group at RM1.74 billion, with 7.83 million shares exchanging hands.