Property developer Avaland Bhd reported its highest net profit in five years of RM66 million in the financial year ended 31 December 2023 FY2023, a marked improvement from its RM0.5 million net profit last year (FY2022).
It also recorded a net loss of RM16.2 million in the full fiscal year of 2021.
In a statement today (Feb 22), the group, formerly known as MCT Berhad, said the huge leap in FY2023 net profit is on revenue of RM608.2 million, a 170% surge from RM224.9 million in FY2022.
“The improved financial performance was mainly due to increased contributions on the back of advanced construction progress from the group’s ongoing projects, namely Aetas Damansara, Alira Subang Jaya, Casa Embun and Sanderling.”
Meanwhile, in the fourth quarter ended 31 December 2023 (4Q2023), Avaland registered a net profit of RM37.5 million from RM13.5 million in 4Q2022.
“Its revenue increased by more than threefold to RM261.6 million from RM76.5 million in the previous corresponding quarter.”
Avaland chief executive officer Apollo Bello Tanco (Pol) said the stellar financial performance reported in FY2023 is the culmination of years of strategic initiatives aimed at strengthening the group’s operations, financial robustness and focus on delivering quality homes.
“Despite facing economic and market challenges in 2023 such as the higher overnight policy rate and weaker ringgit, we not only reported quarterly growth throughout the year but also achieved higher sales for the year.
“We achieved 7.6% higher sales to RM586.1 million in FY2023 from RM544.7 million in FY2022, mainly contributed by the strong demand from Casa Embun, Sanderling and Alira Subang Jaya due to their strong value proposition and strategic locations,” he said.
Pol added the group is also proud to be included as a constituent of the FTSE4Good Bursa Malaysia and FTSE4Good Bursa Malaysia Shariah Indexes with a three-star ESG Grading, which signifies the group’s commitment towards providing sustainable developments.
The improved sales performance was in-line with the encouraging take-up rate of its ongoing projects, namely Aetas Damansara (98%), Sanderling (77%), Casa Embun (84%) and Alira Subang Jaya (85%).
Consequently, Avaland unbilled sales as at 31 December 2023 rose to RM863.3 million, providing the group with earnings visibility over the next few years.
For FY2024, Pol said to further bolster our future earnings, Avaland targets to launch three new projects namely Amika Residences, Aetas Seputeh and Anja Bangi with a total gross development value (GDV) of RM1.4 billion.
The three developments cater to three different segments of the Malaysian property market, Anja Bangi being in the affordable range of an average price below RM600,000; Amika Residences is in the middle-priced range (between RM600,000 and RM800,000); and Aetas Seputeh which is in the luxury segment.
“We are confident that the new projects will be well accepted by the market considering its strategic location, unique concepts and design for post-pandemic lifestyles.
“Moving forward, we remain optimistic of the Group’s prospects with the property industry rebounding from the lows during the pandemic as the number of overhang residential properties continue to improve while the interest rate remains stable.
“Furthermore, the enhanced Malaysia My Second Home programme coupled with higher financial assistance set aside under the Housing Credit Guarantee Scheme are expected to benefit the Group as these would boost demand for homeownership,” he added.
