PETALING JAYA: Sime Darby Property Bhd’s net profit for its first quarter ended March 31,2021, surged to RM60.61mil from RM2.72mil in the previous corresponding period, mainly attributable to the recovery in the company’s property development segment.
Revenue in the first quarter grew to RM589.49mil from RM476.74mil in the previous corresponding period.
Given the stellar performance during the first quarter, Sime Darby Property group managing director Datuk Azmir Merican said the company is on track to achieve its 2021 sales target of RM2.4bil.
“Robust digital marketing efforts led to healthy take-up rates of more than 90% for new launches during the quarter, ” he said during a virtual press conference yesterday.
Azmir added that the group achieved sales of RM630.2mil during the quarter, while unbilled sales and total bookings stood at RM1.7bil and RM800mil respectively.
Commenting on the outlook of the property market for the remainder of the year, Azmir said much will depend on how well Malaysia can contain the Covid-19 pandemic.
Meanwhile, in a filing with Bursa Malaysia yesterday, Sime Darby Property said its property segment in the first quarter of 2021 registered a significant improvement in performance by RM96.4mil or more than a ten-fold increase in contribution, as compared with the previous corresponding period.
“The significant improvement was mainly contributed by higher sales and development activities in City of Elmina, Serenia City, Serini, The Ridge and Senada in the current quarter.
“In addition, the operating expenses for the current quarter were lower as a result of prudent cost management.”
In the previous corresponding period, Sime Darby Property said development activities and the registration of new sales were affected by the implementation of the movement control order (MCO).
“In addition, lower gross profit margin was recorded in the corresponding period mainly due to minimal profit derived from sale of land at RM118.7mil in Gold Coast, Australia.
Meanwhile, the group’s leisure segment registered a revenue of RM14.1mil, compared with RM18.5mil in the previous corresponding period.
“Contribution from events and functions remains low following the Covid-19 pandemic outbreak and temporary closure of businesses as a result of the reinforcement of the MCO by the government, ” the company said.
“Despite that, the segment’s results have marginally improved to a loss of RM3.1mil as compared to a loss of RM5.4mil in the previous corresponding period, mainly driven by lower operating losses upon consolidation of operations with a focus on manpower optimisation during the quarter.”