IGB’s Fourth Quarter Earnings Down 14.3%

IGB’s Fourth Quarter Earnings Down 14.3%

PETALING JAYA, 22 February: IGB Corp Bhd reported a 14.3% drop in net profit to RM43.99 million for the fourth quarter ended Dec 31, 2016 from RM51.31 million in the same quarter a year ago, due to higher taxes and administrative expenses.

Revenue declined marginally by 0.6% from RM284.62 million to RM282.87 million, owing to lower contributions from the property development, property investment – commercial and hotel divisions.

The group has proposed to declare an interim dividend of 5 sen per share for the quarter under review.

IGB’s full-year net profit, however, rose 37.4% from RM216.9 million to RM297.99 million on the back of a 1.4% drop in revenue from RM1.17 billion to RM1.15 billion.

While revenue contribution from the property development division decreased 40% to RM93.6 million and property investment – commercial division – fell 4% to RM122.9 million, these decreases were mitigated by higher contribution from the other operating divisions, namely property investment – retail, hotel and investment divisions, which stood at RM493.5 million, RM379.7 million and RM60.6 million, respectively.

In a filing with the stock exchange, IGB said it expects 2017 to continue to be a challenging year in view of the uncertainties in the global as well as local economic climate.

It is cautiously optimistic that its performance in FY2017 will be satisfactory.