November 14, KUALA LUMPUR – Premier lifestyle property developer Eastern & Oriental Berhad (E&O) released its financial results for the first six months of its 2017-2018 fiscal year, reporting a year-on-year (y-o-y) increase in profit and revenue.
Revenue for the 6-month period ended 30 September 2017 stood at RM369.3 million, up 52.2% from the same period a year ago, thanks to higher revenue recognised from the Group’s ongoing projects in Seri Tanjung Pinang, Penang. These include The Tamarind, the Amaris Terraces and the Ariza Seafront Terraces. Higher sales of completed properties such as the Andaman at Quayside condominiums in Seri Tanjung Pinang, Penang and Princes House in London, also contributed to higher revenue recognition.
The Group’s pre-tax profit came in at RM67.1 million, a 291.8% surge y-o-y. Leading the performance of the company was its core driver, the property segment which recorded an operating profit of RM103.7 million for the first half ended 30 September 2017, a doubling of the RM51.8 million achieved in the same period 12 months ago. “Our positive results for the first half of financial year 2018 reflects an upward trend in our performance shown also by our first quarter results.
“We hope to sustain this performance by enhancing our sales initiatives as well as through prudent management of our financial position,”said E&O managing director, Kok Tuck Cheong.
Kok highlighted that the Group had successfully pared down its gearing position to 0.59 times to-date, as compared to 0.73 times at the end of financial year 2017.
Meanwhile, there was a tapering in the contribution to revenue and profit by E&O’s joint- venture projects-The Mews in the Kuala Lumpur city centre and Avira Garden Terraces in Iskandar Malaysia-due to the completion of the properties. Most recently in late October, E&O and its JV partner for The Mews, Mitsui Fudosan Co. Ltd, held an event to mark the completion of the project and have commenced the handing over of units to purchasers.