Mulpha sinks deeper into the red on Aveo impairment


  • Corporate News
  • Friday, 29 Nov 2019

“Pre tax profit decreased by RM302.47mil as it was significantly impacted by the impairment of investment in an associate, Aveo of RM315.38mil. This is offset by better performance in the hospitality and property divisions by RM6.82mil and RM6.63mil, ” it said.

KUALA LUMPUR: MULPHA INTERNATIONAL BHD posted net losses of RM299.32mil in the third quarter ended Sept 30,2019, severly impacted by impairment of investment in an associate, Aveo Group, an Australian-listed associate.

It said on Friday the net losses widened sharply compared with net losses of RM6.65mil a year ago.

Its revenue rose to RM210.53mil from RM168.54mil primarily due to the attributed to the hospitality and property divisions. Loss per share were 93.69 sen compared with 2.08 a year ago.

“Pre tax profit decreased by RM302.47mil as it was significantly impacted by the impairment of investment in an associate, Aveo of RM315.38mil. This is offset by better performance in the hospitality and property divisions by RM6.82mil and RM6.63mil, ” it said.

The unfavourable performance of Aveo is due to the sluggish retirement assets sales, a loss on change in fair value of its retirement investment portfolio valuation primarily driven by the downwards revision of the key assumption of property price growth.

Mulpha said the property division recorded revenue of RM69.51mil and pre-tax profit of RM25.34mil for versus revenue of RM58.01mil and pre-tax profit of RM18.72mil a year ago.

Its hospitality division registered revenue of RM118.83mil and pre-tax profit of RM11.52mil as compared to revenue of RM91.37mil and pre-tax profit of RM4.70mil a year ago.

However, the investment and other activities division recorded a pre-tax loss of RM327.10mil as compared to pre-tax loss of RM4.98mil a year ago. The higher pre-tax loss was mainly due to impairment loss on investment in an associate, Aveo of RM315.38mil.

For the nine months, it posted net losses of RM396.42mil compared with net profit of RM139.79mil in the previous corresponding period. Its revenue increased to RM530.77mil from RM510.36mil.


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