Glomac’s quarterly bottom line rises, buoyed by property development

In a filing with Bursa Malaysia, the company said the higher net profit was also due to the decline in other operating expenses and finance cost.

PETALING JAYA: Property developer Glomac Bhd’s net profit rose 37.2% year-on-year to RM11.52mil in the second quarter ended Oct 31, 2021 (Q2) from RM8.40mil a year ago, mainly driven by improvement in its gross profit margin in the property development segment.

In a filing with Bursa Malaysia, the company said the higher net profit was also due to the decline in other operating expenses and finance cost.

However, Glomac’s revenue fell 28% to RM75.39mil in the quarter compared to RM104.61mil a year ago dragged by various phases of the movement control order (MCO).

“Revenue from the property development segment for the quarter and cumulative year-to-date decreased by 28% and 31%, respectively, as compared to the previous corresponding period, mainly due to the restricted physical construction work for ongoing project phases during the MCO which impacted the progress of construction work.

“Nevertheless, new launches and ongoing phases such as Saujana Perdana located at Bandar Saujana Utama, Plaza@Kelana Jaya, 121 Residences, Lakeside Boulevard and Sri Saujana in Johor have contributed to the revenue for the period.

“The revenue for the group mainly derived from the property development segment,” it said.

For Q2, the group’s earnings per share stood at 1.50 sen compared to 1.09 sen a year ago.

For the group’s property investment segment, Glomac said revenue also dropped 20% for the quarter as the industry was adversely impacted by Covid-19 and the various phases of the MCO.

Moving forward, the directors expect the financial year ending April 30, 2022 (FY22) to remain challenging due to the impact of the Covid-19 pandemic and the previous MCO restrictions.

“The group is backed by a sustainable level of unbilled sales of RM526mil and pipeline of new launches for the financial year,” it said.

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