Guocoland reported revenue of RM138.3 million and profit before tax of RM27.5 million for the current quarter under review as compared to revenue of RM172.1 million and profit before tax of RM39.7 million in the preceding year’s corresponding quarter.
The lower Group revenue and profit before tax reported this quarter was primarily due to lower contribution from the property development division which were partially offset by better performance in the hospitality division and one-off land disposal located in Mukim and District of Jasin, Melaka that contributed revenue of RM19.0 million and profit before tax of RM12.7 million to the current quarter.
The lower performance from the property development division was mainly due to the lower percentage of completion achieved for the first phase of Emerald 9 in Cheras as it nears completion and fewer ongoing projects as the vacant possession of Garden Terrace and South Tower phases of Emerald Hills in Cheras had been delivered in the first quarter of the financial year ended 30 June 2023
The group said there were no material subsequent events not reflected in the financial statements. The valuations of property, plant and equipment, and investment properties were adjusted during the financial year as per Note 16 which was determined based on valuation reports by accredited independent valuers. There were no changes in the composition of the Group during the quarter under review, including business combinations, acquisition or disposal of subsidiaries and long-term investments, and restructuring.
The performance of the hospitality division has improved with higher occupancy and better average room rates recorded from the increase in tourist arrivals and enhanced domestic commercial and social activities. The Group incurred lower administrative expenses as compared to the previous corresponding period due to lower operational expenses incurred in the current quarter. The lower share of results of associates and joint ventures was mainly due to a share of loss in an associated company resulting from fair value loss on its investment properties.
