Guocoland reported revenue of RM102.5 million and profit before tax of RM3.8 million for the current quarter under review as compared to revenue of RM35.1 million and loss before tax of RM7.7 million in the previous corresponding quarter. The group attributed the improved results to higher contributions from the property development division and lower losses incurred by the hospitality division.
As for profit before tax in the current quarter, profits came in at RM3.8 million as compared to RM39.7 million in the immediate preceding quarter (Q4 FY2022). The drop in the current quarter it said was mainly attributed to the lower contributions from the property development and plantation division. The finance cost incurred by the Group increased by RM0.9 million as compared to the previous year corresponding quarter arising from the increase in interest rate pursuant to the increase in overnight policy rate (OPR) set by Bank Negara Malaysia.
The property development division reported a better performance due to contributions from its ongoing projects in Emerald 9 and Emerald Hills in Cheras. The performance of the hospitality division has improved with higher occupancy and average room rates from the increase in tourist arrivals with the simplification of entry regulations into the country and enhanced local travel and business activities.
Guocoland said it incurred higher sales and marketing expenses as compared to the previous corresponding quarter mainly due to increased marketing activities for its ongoing projects. Administrative expenses were higher due to increased hotel operation cost consistent with the increase in hotel revenue. The share of results of associates and joint ventures reported a lower profit due to slower progress in its Rawang projects.
