IOI Properties Group Berhad beat tough conditions to record increase in revenue and net profit for the full financial year ended 2021. The group which is involved in a diverse business interest managed to see profits rise 30% to RM663.3million while its revenue improved by 18% to RM2.5 billion.
Chief Executive Officer Dato’ Voon Tin Yow hails the feat as commendable and attributes it to the commitment and passion of team in IOI, he also noted that the sales achieved surpass the targets of RM2 billion to RM2.3 billion.
For the fourth quarter ended June, groups net profit surged almost three- fold to RM119.4 million compared with preceding year corresponding quarter. Its revenue increased 8% to RM658.6 million from the preceding years corresponding quarter.
Revenue from the property development segment was RM579.8 million or 6% higher mainly attributed to the operations in Malaysia which increased by 238% from RM124.4 million to RM420.8 million. However, this was partly offset by lower contribution from its operations in China due to lower sales achieved.
For property investment segment, revenue and operating profit increased 6% and 3% to RM57.5 million and RM18.3 million respectively, mainly due to higher rental relief assistance to tenants due to the pandemic.
The hospitality and leisure segment recorded better financial performance mainly due to the hospitality sub-segment. Moving forward, IOI will leverage on the ongoing Home Ownership Campaign, its digital marketing capabilities and aggressive sales campaigns to drive sales. In China, the construction of residential developments in IOI Palm City in Xiamen has been completed and this development will continue to contribute to the group’s financial performance in the next financial year. Meanwhile, IOI Palm City Mall is expected to commence business in the third quarter of 2021, having secured high levels of occupancy.
Singapore operations on IOI Central Boulevard Towers has disrupted due to Covid-19 restriction, however the group anticipates its construction progress to recover swiftly as the government continues to confidently manage the pandemic with a high rate of vaccination amongst its population. Meanwhile, leasing activities for IOI Central Boulevard Towers has commenced.
For the retail segment in Malaysia, IOI had handed rental relief assistance amounting to approximately RM71 million as of June. The group expects the business environment to remain challenging as countries face resurgence of COVID-19 infections globally.
