KUALA LUMPUR: Fiamma Holdings Bhd
's earnings for the third quarter 2017 was 7% higher to RM6.38mil from the previous corresponding quarter owing to higher contribution from the property development segment.
Year to date, revenue for the group was RM225.6mil compared to RM210.5mil in the preceding financial period.
The property development segment contributed RM22.8mil in the current financial period, 246.2% higher than in the previous corresponding period. This represented 10.1% of the group's revenue in the three quarters of the current financial year.
The improved performance was mainly attributable to higher revenue contribution from the group’s ongoing developments in Johor and the launching of East Parc @ Menjalara project in Kuala Lumpur in the second quarter of FY17.
Meanwhile, the trading and services segment, which makes up the largest portion of the group's revenue, declined slightly in the current financial period to RM198.9mil from RM200.2mil the previous year.
The investment holding and property investment segment recorded slightly higher revenue of RM3.9mil compared with RM3.8mil in the previous corresponding period. The revenue was derived mainly from letting of investment properties at Wisma Fiamma in Bandar Manjalara and Menara Centara in Jalan Tuanku Abdul Rahman in Kuala Lumpur.
On outlook, the group says it will remain focused on expanding its existing core businesses given stronger growth prospects for the Malaysian economy.
For its trading and services segment, Fiamma will continue to build on its effective supply chain system and proven core competencies as well as invest in brand building and promotional activities.
Meanwhile, revenue in its property development segment will gain from its ongoing developments as well as the proposed new residential developments in Batu Pahat, Johor, and in Jalan Yap Kwan Seng and Jalan Sungai Besi in Kuala Lumpur.
The counter was up 0.5 sen or 1% to 51.5 sen at the close of Monday trade on volume of 142,500 shares.
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